The market value of Barton Le Clay 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 significantly once the unexpired lease term is below than 80 years
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Barton Le Clay leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Joseph was the the leasehold proprietor of a conversion apartment in Barton Le Clay being sold with a lease of a few days over 72 years unexpired. Joseph informally approached his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Joseph to exercise his statutory right. Joseph obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the property.
Last Christmas we were called by Dr I Bonnet , who completed a studio flat in Barton Le Clay in April 2000. We are asked if we could approximate the premium could be to prolong the lease by 90 years. Identical flats in Barton Le Clay with an extended lease were valued around £225,400. The mid-range amount of ground rent was £45 billed annually. The lease concluded in 2090. Having 64 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £16,200 and £18,600 not including fees.
Last Summer we were phoned by Dr Maisie James , who bought a garden flat in Barton Le Clay in June 2008. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Comparative properties in Barton Le Clay with 100 year plus lease were in the region of £270,000. The average ground rent payable was £55 invoiced quarterly. The lease termination date was on 10 September 2101. Given that there were 75 years outstanding we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.