The re-sale value of a leasehold property in Coniston depends on how long the lease has remaining. If it is close to or fewer than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. Ideally one should start the lease extension process when the lease still has 82 years remaining so that all matters can be addressed well before the 80 year threshold. Current legislation enables Coniston qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Coniston,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Coniston valuers.
Trailing protracted negotiations with the landlord of her one bedroom apartment in Coniston, Ashleigh started the lease extension process just as her lease was nearing the all-important 80-year threshold. The transaction was finalised in August 2011. The landlord’s fees were kept to an absolute minimum.
Last month we were e-mailed by Mr and Mrs. N Adams , who took over the lease of a ground floor apartment in Coniston in March 1997. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Similar homes in Coniston with a long lease were valued around £264,000. The average ground rent payable was £60 collected yearly. The lease terminated on 5 September 2078. Taking into account 53 years unexpired we calculated the compensation to the landlord to extend the lease to be between £37,100 and £42,800 plus costs.
In 2013 we were contacted by Mr David Rivera who, having was assigned a lease of a recently refurbished flat in Coniston in September 2011. The dilemma was if we could estimate the premium could be to extend the lease by an additional years. Comparable flats in Coniston with 100 year plus lease were worth £225,400. The average ground rent payable was £45 billed monthly. The lease ended on 11 May 2089. Given that there were 64 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £16,200 and £18,600 exclusive of fees.