The market value of Aigburth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate materialy once the unexpired lease term is less than 80 years
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Engaging our service gives you better control over the value of your Aigburth leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of protracted discussions with the freeholder of her purpose-built apartment in Aigburth, Poppy initiated the lease extension process just as the lease was approaching the all-important 80-year threshold. The lease extension was finalised in January 2011. The freeholder’s charges were restricted to below 500 GBP.
In 2009 we were phoned by Mr and Mrs. P Bonnet who, having bought a basement apartment in Aigburth in April 2004. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by ninety years. Comparable residencies in Aigburth with a long lease were worth £198,800. The average ground rent payable was £55 collected quarterly. The lease terminated in 2081. Given that there were 55 years as a residual term we calculated the premium to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of expenses.
Dr Kayleigh Moore acquired a first floor flat in Aigburth in September 1997. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparative premises in Aigburth with 100 year plus lease were in the region of £300,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease ran out in 2101. Having 75 years outstanding we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including fees.