The value of Congleton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the unexpired lease term is less than eighty years
Leasehold premises in Congleton with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you increased control over the value of your Congleton leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jacob was the the leasehold proprietor of a studio apartment in Congleton being sold with a lease of just over 61 years unexpired. Jacob informally spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jacob to exercise his statutory right. Jacob obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Mr P Anderson owned a ground floor flat in Congleton in April 2012. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparable homes in Congleton with an extended lease were worth £254,200. The mid-range ground rent payable was £60 collected monthly. The lease came to a finish on 23 June 2077. Considering the 51 years unexpired we calculated the premium to the freeholder for the lease extension to be within £43,700 and £50,600 plus costs.
Last Summer we were contacted by Dr Ollie Young , who purchased a one bedroom apartment in Congleton in July 2010. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparable flats in Congleton with 100 year plus lease were worth £210,600. The average ground rent payable was £45 billed per annum. The lease expired on 24 February 2088. Given that there were 62 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 not including costs.