Blandfordum residential property owned on a long lease is a wasting asset as the leaseholder merely owns the property for a period of years.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Retaining our service will provide you better control over the value of your Blandfordum leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful correspondence with the freeholder of her studio apartment in Blandfordum, Harriet started the lease extension process just as her lease was nearing the crucial eighty-year mark. The lease extension completed in November 2012. The freeholder’s fees were restricted to under four hundred GBP.
In 2010 we were e-mailed by Mr N Adams who, having owned a one bedroom apartment in Blandfordum in February 2007. We are asked if we could approximate the price would be for a 90 year lease extension. Comparative properties in Blandfordum with 100 year plus lease were in the region of £290,000. The mid-range ground rent payable was £60 invoiced quarterly. The lease expiry date was on 3 May 2106. Taking into account 80 years as a residual term we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus expenses.
Last Christmas we were approach by Mr Sam Díaz , who was assigned a lease of a one bedroom flat in Blandfordum in May 1995. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Comparable premises in Blandfordum with an extended lease were in the region of £200,800. The mid-range amount of ground rent was £65 billed every twelve months. The lease concluded on 26 March 2086. Considering the 60 years remaining we estimated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 plus fees.