The value of Comberton 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 80 years
It is generally accepted that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Retaining our service will provide you increased control over the value of your Comberton leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Kian was the the leasehold owner of a conversion apartment in Comberton being sold with a lease of a few days over 61 years remaining. Kian informally contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. No ground rent would be due on a lease extension were Kian to invoke his statutory right. Kian procured expert legal guidance and secured an acceptable resolution informally and readily saleable.
In 2014 we were called by Mrs Y Nelson who, having owned a studio flat in Comberton in May 1999. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Comparative properties in Comberton with a long lease were worth £260,000. The average amount of ground rent was £50 collected monthly. The lease expired in 2098. Having 72 years unexpired we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.
Last Autumn we were contacted by Ms S Thomas , who moved into a one bedroom flat in Comberton in March 2007. The question was if we could estimate the price would likely be to prolong the lease by an additional years. Comparative premises in Comberton with 100 year plus lease were worth £256,600. The average ground rent payable was £60 invoiced per annum. The lease came to a finish in 2078. Given that there were 52 years outstanding we calculated the premium to the freeholder for the lease extension to be within £39,000 and £45,000 exclusive of expenses.