The value of Arnside leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate substantially once the unexpired lease term is less than 80 years
Leasehold properties in Arnside with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in Arnside,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Arnside valuers.
Off the back of unsuccessful discussions with the landlord of her one bedroom flat in Arnside, Alicia initiated the lease extension process as the 80 year mark was swiftly coming. The lease extension was concluded in July 2013. The freeholder’s charges were negotiated to a tad over 700 GBP.
Last Autumn we were called by Mr and Mrs. C Ramírez , who completed a recently refurbished apartment in Arnside in September 2008. The question was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparative flats in Arnside with 100 year plus lease were valued about £260,200. The mid-range amount of ground rent was £65 collected yearly. The lease came to a finish on 1 September 2092. Taking into account 66 years remaining we estimated the premium to the landlord to extend the lease to be between £16,200 and £18,600 exclusive of professional charges.
Last May we were phoned by Mr and Mrs. P Girard , who completed a garden apartment in Arnside in November 2012. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Identical homes in Arnside with 100 year plus lease were worth £198,800. The average amount of ground rent was £55 invoiced quarterly. The lease terminated on 9 July 2081. Given that there were 55 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 exclusive of costs.