Appleton residential property held on a long lease is a depreciating asset because a leaseholder merely owns the property for a period of years.
Leasehold properties in Appleton with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| 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. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you increased control over the value of your Appleton leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Benjamin, started to get near to the eighty-year mark with the lease on his ground floor flat in Appleton. Having purchased his property two decades ago, the lease term was of minimal concern. As luck would have it, he became aware that he needed to take action soon on a lease extension. Benjamin arranged for a lease extension just under the wire last April. Benjamin and the landlord ultimately agreed on a premium of £5,500 . If he failed to meet the deadline, the figure would have gone up by at least £1,025.
Last year we were e-mailed by Mrs Gemma Alexander , who took over the lease of a garden apartment in Appleton in January 2000. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar homes in Appleton with 100 year plus lease were in the region of £208,600. The average amount of ground rent was £60 billed every twelve months. The lease lapsed in 2082. Considering the 57 years unexpired we estimated the premium to the landlord for the lease extension to be within £30,400 and £35,200 plus fees.
Mr Jude François acquired a garden apartment in Appleton in March 1997. The question was if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Similar flats in Appleton with an extended lease were worth £200,000. The average ground rent payable was £50 invoiced quarterly. The lease expired on 16 October 2102. Given that there were 77 years remaining we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 plus professional charges.