The value of Attleborough 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 remaining term is less than eighty years
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent 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 many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 enhanced control over the value of your Attleborough leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Tommy owned a 2 bedroom apartment in Attleborough on the market with a lease of just over sixty years left. Tommy on an informal basis spoke with his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Tommy to invoke his statutory right. Tommy procured expert advice and was able to make an informed decision and handle with the matter and sell the flat.
Mr and Mrs. J Khan moved into a ground floor apartment in Attleborough in January 2011. The question was if we could approximate the premium would be for a ninety year lease extension. Similar properties in Attleborough with 100 year plus lease were valued around £218,000. The average amount of ground rent was £45 billed monthly. The lease lapsed on 11 June 2088. Having 63 years unexpired we calculated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 exclusive of expenses.
Last February we were contacted by Mr and Mrs. S Anderson , who purchased a one bedroom apartment in Attleborough in June 1999. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Comparable premises in Attleborough with a long lease were in the region of £265,000. The mid-range amount of ground rent was £50 invoiced annually. The lease terminated on 27 June 2099. Having 74 years unexpired we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.