The value of Barton Seagrave 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 increase substantially once the unexpired lease term is less than 80 years
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a landlord in Barton Seagrave,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Barton Seagrave valuers.
Benjamin was the the leasehold owner of a conversion flat in Barton Seagrave being sold with a lease of a little over fifty eight years outstanding. Benjamin informally approached his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 yearly. No ground rent would be payable on a lease extension were Benjamin to exercise his statutory right. Benjamin procured expert legal guidance and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
In 2010 we were e-mailed by Dr Elizabeth Gunderson who, having acquired a garden apartment in Barton Seagrave in March 2009. We are asked if we could estimate the price could be for a ninety year extension to my lease. Comparable premises in Barton Seagrave with 100 year plus lease were valued around £246,800. The mid-range amount of ground rent was £60 billed every twelve months. The lease terminated on 26 November 2076. Having 50 years left we estimated the compensation to the freeholder for the lease extension to be between £44,700 and £51,600 not including fees.
In 2009 we were phoned by Dr H White who, having took over the lease of a studio flat in Barton Seagrave in January 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Similar flats in Barton Seagrave with an extended lease were valued around £208,200. The mid-range amount of ground rent was £65 billed quarterly. The lease terminated on 22 March 2087. Considering the 61 years remaining we approximated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 exclusive of costs.