Chiseldon residential property held on a long lease is a depreciating asset because a leaseholder merely owns the property for a period of years.
It is generally considered that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Chiseldon,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Chiseldon valuers.
In the wake of 6 months of lengthy correspondence with the freeholder of her two bedroom apartment in Chiseldon, Naomi initiated the lease extension process just as her lease was coming close to the critical 80-year threshold. The legal work completed in May 2007. The landlord’s costs were negotiated to about 600 GBP.
Mr and Mrs. I Bonnet completed a one bedroom apartment in Chiseldon in August 2010. The question was if we could estimate the price would be for a 90 year lease extension. Comparable premises in Chiseldon with an extended lease were worth £237,600. The average ground rent payable was £45 collected quarterly. The lease came to a finish on 9 August 2093. Given that there were 67 years remaining we approximated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of legals.
Last Winter we were phoned by Ms I Bertrand , who completed a one bedroom apartment in Chiseldon in January 2007. We are asked if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Similar residencies in Chiseldon with 100 year plus lease were worth £280,000. The average amount of ground rent was £55 invoiced monthly. The lease expiry date was in 2104. Taking into account 78 years outstanding we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus legals.