Church Stretton residential property held on a long lease is a wasting asset as the leaseholder merely owns the property for a set term.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Engaging our service gives you increased control over the value of your Church Stretton leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted negotiations with the freeholder of her purpose-built flat in Church Stretton, Jordan commenced the lease extension process as the 80 year mark was swiftly approaching. The legal work was finalised in May 2008. The landlord’s fees were negotiated to under 550 pounds.
In 2011 we were e-mailed by Mr E Roberts who, having owned a first floor apartment in Church Stretton in June 1998. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative properties in Church Stretton with an extended lease were valued around £173,800. The average ground rent payable was £60 collected per annum. The lease elapsed in 2081. Taking into account 55 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 plus legals.
In 2014 we were called by Mr and Mrs. C Clarke who, having completed a recently refurbished apartment in Church Stretton in May 1996. The dilemma was if we could approximate the price would be to prolong the lease by an additional years. Comparable properties in Church Stretton with 100 year plus lease were valued about £235,200. The mid-range ground rent payable was £45 invoiced quarterly. The lease ran out on 28 June 2092. Given that there were 66 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including fees.