The value of Avonmouth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the remaining term is less than eighty years
It is generally considered that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 freeholder in Avonmouth,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Avonmouth valuers.
Trailing protracted discussions with the landlord of her studio apartment in Avonmouth, Samantha started the lease extension process as the 80 year deadline was quickly approaching. The transaction was finalised in September 2011. The landlord’s fees were kept to an absolute minimum.
Last Autumn we were approach by Mr and Mrs. M Williams , who purchased a ground floor flat in Avonmouth in September 2006. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Comparable premises in Avonmouth with a long lease were in the region of £280,000. The average ground rent payable was £55 invoiced monthly. The lease expired on 7 November 2103. Considering the 78 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.
Last May we were e-mailed by Ms Megan Wood , who was assigned a lease of a studio flat in Avonmouth in November 2012. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Comparable residencies in Avonmouth with 100 year plus lease were valued about £191,000. The mid-range ground rent payable was £65 billed per annum. The lease ended on 4 June 2083. Considering the 58 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £23,800 and £27,400 plus fees.