The value of Barlaston and Tittensor leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate significantly once the unexpired lease term is less than eighty years
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you increased control over the value of your Barlaston and Tittensor leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Winter Nathan, started to get near to the eighty-year threshold with the lease on his leasehold apartment in Barlaston and Tittensor. In buying his property 18 years previously, the unexpired term was of no interest. by good luck, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Nathan was able to extend his lease just under the wire in March. Nathan and the landlord who owned the flat above ultimately settled on the final figure of £5,500 . If he had missed the deadline, the price would have become more exhorbitant by a minimum £1,050.
Ms Lauren Green took over the lease of a one bedroom apartment in Barlaston and Tittensor in November 2002. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparative flats in Barlaston and Tittensor with an extended lease were in the region of £270,000. The average amount of ground rent was £65 invoiced yearly. The lease elapsed in 2094. Considering the 68 years unexpired we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of expenses.
In 2011 we were e-mailed by Mr and Mrs. G López who, having owned a ground floor flat in Barlaston and Tittensor in September 2007. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical homes in Barlaston and Tittensor with 100 year plus lease were valued about £208,600. The average ground rent payable was £60 invoiced per annum. The lease end date was in 2083. Given that there were 57 years left we calculated the premium to the landlord for the lease extension to be within £30,400 and £35,200 plus legals.