The market value of Bursledon leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate materialy once the remaining term is less than eighty years
Leasehold properties in Bursledon with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Bursledon,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bursledon valuers.
Two years ago Jonathan, started to get near to the 80-year mark with the lease on his ground floor flat in Bursledon. Having bought his property twenty years previously, the length of the lease was of no bearing. by good luck, he noticed he needed to take action soon on Extending the lease. Jonathan extended the lease just ahead of time last May. Jonathan and the landlord who owned the flat above subsequently agreed on sum of £5,000 . If the lease had slid below 80 years, the amount would have gone up by a minimum £900.
Last year we were contacted by Mr and Mrs. H Gray , who purchased a newly refurbished apartment in Bursledon in April 1997. We are asked if we could approximate the premium could be for a ninety year lease extension. Comparable premises in Bursledon with 100 year plus lease were in the region of £198,800. The mid-range ground rent payable was £55 collected yearly. The lease terminated in 2080. Considering the 55 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £33,300 and £38,400 plus professional charges.
In 2010 we were approached by Mr and Mrs. P Adams who, having completed a one bedroom apartment in Bursledon in April 2001. The question was if we could approximate the premium would be to extend the lease by an additional years. Comparable homes in Bursledon with a long lease were in the region of £295,000. The average amount of ground rent was £50 collected annually. The lease ran out on 6 March 2100. Given that there were 75 years outstanding we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.