Chances are that where you own a flat in Bestwood you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with over 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 remaining, the premises will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Regardless of whether you are a tenant or a landlord in Bestwood,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bestwood valuers.
During the course of the last few months Lucas, started to get near to the eighty-year mark with the lease on his ground floor apartment in Bestwood. Having bought his flat two decades ago, the unexpired term was of no concern. by good luck, he noticed he would imminently be paying an escalated premium for Extending the lease. Lucas extended the lease just under the wire in August. Lucas and the landlord who owned the flat above eventually agreed on the final figure of £5,000 . If the lease had gone to less than 80 years, the figure would have increased by a minimum £850.
Dr Jack Michel owned a recently refurbished flat in Bestwood in March 2003. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Identical residencies in Bestwood with a long lease were worth £235,200. The average amount of ground rent was £45 billed per annum. The lease ran out on 16 February 2091. Taking into account 66 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including professional charges.
Last Summer we were phoned by Mr and Mrs. S Stewart , who owned a one bedroom apartment in Bestwood in June 2004. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparative properties in Bestwood with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £55 billed monthly. The lease concluded on 28 August 2102. Taking into account 77 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including expenses.