The market value of Countesthorpe 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 substantially once the unexpired lease term is below than 80 years
Leasehold residencies in Countesthorpe with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Countesthorpe can be a difficult process. We recommend you obtain professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Countesthorpe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted correspondence with the landlord of her leasehold flat in Countesthorpe, Jade commenced the lease extension process as the 80 year mark was rapidly coming. The lease extension was concluded in May 2013. The freeholder’s costs were kept to an absolute minimum.
In 2012 we were e-mailed by Mr and Mrs. P Bell who, having bought a recently refurbished flat in Countesthorpe in November 1996. The dilemma was if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Comparative residencies in Countesthorpe with 100 year plus lease were valued around £191,400. The mid-range ground rent payable was £55 billed per annum. The lease finished on 26 November 2080. Considering the 54 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £34,200 and £39,600 exclusive of expenses.
In 2009 we were contacted by Mrs I Brown who, having owned a purpose-built apartment in Countesthorpe in November 2000. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Similar flats in Countesthorpe with an extended lease were worth £295,000. The average ground rent payable was £45 invoiced quarterly. The lease termination date was on 26 May 2100. Given that there were 74 years outstanding we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.