The market value of Chopwell leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase significantly once the remaining term is below than 80 years
Leasehold properties in Chopwell with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
Regardless of whether you are a tenant or a landlord in Chopwell,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 Chopwell valuers.
After lengthy discussions with the freeholder of her two bedroom apartment in Chopwell, Jennifer initiated the lease extension process just as the lease was nearing the critical eighty-year mark. The legal work completed in April 2015. The landlord’s costs were restricted to a tad over 450 pounds.
Last Christmas we were contacted by Mrs I Rodríguez , who completed a purpose-built apartment in Chopwell in July 2000. We are asked if we could estimate the price would be to extend the lease by ninety years. Identical homes in Chopwell with 100 year plus lease were worth £166,800. The mid-range amount of ground rent was £50 billed monthly. The lease elapsed in 2076. Considering the 50 years outstanding we approximated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of expenses.
In 2014 we were approached by Ms Sarah Dupont who, having took over the lease of a studio flat in Chopwell in April 1997. The dilemma was if we could approximate the price would be to prolong the lease by 90 years. Comparable residencies in Chopwell with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £45 invoiced yearly. The lease elapsed in 2096. Having 70 years left we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of costs.