Curdworth residential property owned on a long lease is a depreciating asset because a leaseholder merely owns the property for a set term.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Curdworth can be a difficult process. We recommend you get professional help from a conveyancer 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 Curdworth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Charlie, started to get near to the eighty-year mark with the lease on his two bedroom flat in Curdworth. In buying his home 19 years previously, the length of the lease was of no bearing. Fortunately, he noticed he would imminently be paying an escalated premium for a lease extension. Charlie arranged for a lease extension just ahead of time in June. Charlie and the landlord who owned the flat above ultimately agreed on a premium of £5,000 . If he failed to meet the deadline, the premium would have increased by a minimum £1,075.
Last Christmas we were approach by Ms A Flores , who purchased a purpose-built apartment in Curdworth in January 2011. The question was if we could approximate the price would likely be for a 90 year extension to my lease. Similar homes in Curdworth with an extended lease were in the region of £295,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease came to a finish on 7 August 2100. Considering the 74 years unexpired we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of costs.
Last Summer we were contacted by Dr V Nguyen , who owned a purpose-built flat in Curdworth in February 2008. The question was if we could approximate the price would be to prolong the lease by 90 years. Identical properties in Curdworth with an extended lease were in the region of £243,000. The mid-range ground rent payable was £65 billed yearly. The lease terminated on 3 May 2089. Taking into account 63 years left we approximated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 exclusive of professional charges.