The market value of Batley leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase significantly once the remaining term is below than 80 years
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Batley,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 Batley valuers.
Subsequent to unsuccessful negotiations with the freeholder of her leasehold apartment in Batley, Sarah started the lease extension process as the 80 year threshold was swiftly coming. The lease extension was concluded in January 2013. The freeholder’s fees were kept to an absolute minimum.
Last Autumn we were approach by Mr and Mrs. G Mason , who purchased a one bedroom flat in Batley in May 2001. We are asked if we could approximate the price would be for a ninety year lease extension. Identical homes in Batley with an extended lease were valued about £255,000. The average amount of ground rent was £50 billed quarterly. The lease concluded in 2096. Taking into account 70 years unexpired we calculated the compensation to the landlord for the lease extension to be within £10,500 and £12,000 exclusive of costs.
Mr Dexter Wright completed a ground floor apartment in Batley in June 2011. The dilemma was if we could estimate the price would likely be to prolong the lease by 90 years. Identical homes in Batley with an extended lease were worth £246,800. The mid-range amount of ground rent was £60 collected monthly. The lease expired in 2076. Given that there were 50 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £44,700 and £51,600 plus legals.