Arthog residential property held on a long lease is a depreciating asset because a leaseholder merely owns the property for a set term.
Leasehold properties in Arthog with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Arthog leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
George was the the leasehold proprietor of a 2 bedroom apartment in Arthog on the market with a lease of fraction over fifty eight years left. George on an informal basis contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were George to exercise his statutory right. George obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
In 2012 we were phoned by Mr and Mrs. U Reed who, having moved into a ground floor apartment in Arthog in January 2009. The dilemma was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Comparable premises in Arthog with 100 year plus lease were worth £264,000. The mid-range amount of ground rent was £60 billed yearly. The lease expired in 2078. Having 53 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £37,100 and £42,800 plus legals.
In 2011 we were e-mailed by Ms V Taylor who, having took over the lease of a studio flat in Arthog in January 1999. The question was if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Comparative premises in Arthog with an extended lease were valued around £220,400. The mid-range ground rent payable was £45 invoiced monthly. The lease expired on 13 July 2089. Taking into account 64 years remaining we approximated the premium to the freeholder to extend the lease to be between £15,200 and £17,600 not including costs.