The market value of a leasehold property in Addiscombe depends on how long the lease has remaining. If it is close to or less than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years to run so that a lease extension can be concluded prior to the 80 year cut off point. Current legislation entitles Addiscombe qualifying lessees to an additional term of ninety years on top of the remaining term, at a peppercorn rent (no ground rent). The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Retaining our service will provide you increased control over the value of your Addiscombe leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted discussions with the freeholder of her first floor flat in Addiscombe, Rosie started the lease extension process as the eighty year mark was quickly coming. The legal work was concluded in September 2008. The landlord’s costs were kept to an absolute minimum.
Dr Charlotte Clark acquired a garden flat in Addiscombe in August 2007. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative premises in Addiscombe with a long lease were valued about £183,600. The average ground rent payable was £65 invoiced yearly. The lease end date was on 5 June 2083. Having 57 years remaining we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of expenses.
An example of a Freehold Enfranchisement matter before the tribunal for a Addiscombe residence is 29 Woodstock Road in April 2014. the Tribunal determined that the premiums to be paid into court in respect of the purchase of the freehold registered at HMLR under Title N0.SY3997 should be £7,217. This case related to 4 flats. The unexpired residue of the current lease was 98 years.