The value of Bloxham 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 escalate significantly once the remaining term is less than eighty years
It is conventional wisdom that a residential leasehold with over 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 premises will be worth the same as a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Bloxham can be a difficult process. We recommend you secure guidance from a lawyer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Bloxham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Seth, came very close to the 80-year threshold with the lease on his two bedroom flat in Bloxham. In buying his flat two decades ago, the unexpired term was of little interest. Fortunately, he became aware that he would soon be paying an escalated premium for a lease extension. Seth extended the lease just under the wire in March. Seth and the freeholder via the managing agents subsequently agreed on a premium of £5,000 . If he not met the deadline, the price would have become more exhorbitant by at least £900.
In 2012 we were e-mailed by Ms Holly Rogers who, having purchased a one bedroom flat in Bloxham in April 1999. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparable premises in Bloxham with a long lease were worth £193,400. The average amount of ground rent was £65 billed quarterly. The lease concluded on 4 November 2085. Having 59 years remaining we estimated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 not including fees.
Ms Kayleigh Simon purchased a recently refurbished flat in Bloxham in February 1999. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar premises in Bloxham with an extended lease were in the region of £250,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease lapsed on 18 January 2095. Taking into account 69 years as a residual term we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.