The market value of Costessey 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 significantly once the unexpired lease term is less than 80 years
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years ahead.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 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. |
Irrespective of whether you are a tenant or a freeholder in Costessey,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Costessey valuers.
Jason was the the leasehold owner of a high value apartment in Costessey on the market with a lease of fraction over 61 years remaining. Jason on an informal basis 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 new rent initially set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jason to invoke his statutory right. Jason obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Last Autumn we were called by Dr Y Watson , who completed a first floor apartment in Costessey in August 1997. We are asked if we could approximate the price would be to extend the lease by 90 years. Comparative residencies in Costessey with a long lease were in the region of £275,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease ran out on 21 March 2103. Considering the 77 years left we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including professional charges.
In 2010 we were contacted by Ms Daisy Moreau who, having was assigned a lease of a one bedroom apartment in Costessey in November 2005. The question was if we could estimate the premium would be to prolong the lease by 90 years. Identical flats in Costessey with 100 year plus lease were valued around £183,600. The average amount of ground rent was £65 billed every twelve months. The lease ran out in 2083. Considering the 57 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus fees.