The value of Curdworth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase significantly once the unexpired lease term is less than 80 years
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Godiva Mortgages | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Engaging our service gives you increased control over the value of your Curdworth leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy discussions with the freeholder of her ground floor apartment in Curdworth, Chelsea commenced the lease extension process as the eighty year deadline was quickly coming. The lease extension was finalised in March 2008. The landlord’s fees were negotiated to under 500 GBP.
In 2013 we were e-mailed by Dr Oliver Mitchell who, having was assigned a lease of a ground floor flat in Curdworth in November 2008. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Identical properties in Curdworth with a long lease were valued around £189,000. The mid-range amount of ground rent was £55 collected monthly. The lease finished in 2078. Taking into account 53 years remaining we approximated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 not including costs.
Dr Dexter Gray bought a one bedroom apartment in Curdworth in July 2011. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparative flats in Curdworth with 100 year plus lease were worth £290,000. The average ground rent payable was £45 billed yearly. The lease termination date was on 16 August 2098. Considering the 73 years left we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.