Attleborough residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Coventry Building Society | 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. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in Attleborough,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 Attleborough valuers.
In recent months Adam, came seriously near to the 80-year mark with the lease on his leasehold flat in Attleborough. Having bought his home two decades ago, the lease term was of no significance. Fortunately, he became aware that he would soon be paying way over the odds for a lease extension. Adam arranged for a lease extension just in the nick of time last March. Adam and the freeholder subsequently settled on the final figure of £5,500 . If the lease had slipped to less than 80 years, the sum would have escalated by a minimum £1,050.
Mr Jonathan Petit took over the lease of a studio apartment in Attleborough in June 2003. The dilemma was if we could approximate the price would likely be to prolong the lease by an additional years. Similar properties in Attleborough with a long lease were in the region of £270,000. The average amount of ground rent was £55 collected every twelve months. The lease terminated on 21 April 2100. Given that there were 74 years outstanding we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.
Last Autumn we were approach by Mr C Bonnet , who purchased a one bedroom flat in Attleborough in June 1995. The question was if we could approximate the price would likely be for a 90 year lease extension. Comparative properties in Attleborough with a long lease were worth £166,400. The average ground rent payable was £60 invoiced quarterly. The lease elapsed in 2080. Given that there were 54 years outstanding we estimated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 plus expenses.