The value of Binfield leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the unexpired lease term is less than 80 years
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to 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. |
| 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. |
| 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. |
Using our service gives you increased control over the value of your Binfield leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Dylan, started to get near to the 80-year threshold with the lease on his first floor apartment in Binfield. Having purchased his home twenty years previously, the length of the lease was of no importance. Thankfully, he recognised he would soon be paying an escalated premium for Extending the lease. Dylan arranged for a lease extension just under the wire in May. Dylan and the freeholder via the management company in the end settled on sum of £5,000 . If he not met the deadline, the price would have increased by at least £950.
Mr Jasper Walker took over the lease of a basement flat in Binfield in April 2001. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Identical residencies in Binfield with a long lease were in the region of £300,000. The average ground rent payable was £50 invoiced yearly. The lease elapsed on 26 March 2100. Given that there were 75 years outstanding we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including fees.
Ms P Turner was assigned a lease of a basement apartment in Binfield in April 2009. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by 90 years. Comparable residencies in Binfield with a long lease were in the region of £250,400. The average amount of ground rent was £65 billed monthly. The lease elapsed in 2089. Considering the 64 years remaining we approximated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 plus legals.