Cherry Burton residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a period of years.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Cherry Burton can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 Cherry Burton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy negotiations with the freeholder of her garden apartment in Cherry Burton, Rachel commenced the lease extension process just as the lease was approaching the critical 80-year deadline. The legal work was concluded in November 2005. The landlord’s costs were kept to an absolute minimum.
Ms Rebecca Lefèvre took over the lease of a first floor flat in Cherry Burton in June 2005. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Similar premises in Cherry Burton with an extended lease were worth £260,000. The average ground rent payable was £50 collected per annum. The lease came to a finish in 2097. Having 72 years left we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.
Last month we were e-mailed by Mr V King , who owned a one bedroom flat in Cherry Burton in February 2007. The question was if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Identical premises in Cherry Burton with a long lease were valued around £261,600. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease lapsed on 16 March 2077. Considering the 52 years left we estimated the premium to the freeholder to extend the lease to be between £39,000 and £45,000 exclusive of fees.