The value of Desborough leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the remaining term is below than eighty years
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Desborough,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Desborough valuers.
In recent months Reuben, came precariously near to the 80-year threshold with the lease on his purpose- built flat in Desborough. In buying his flat two decades ago, the unexpired term was of little importance. by good luck, he noticed he needed to take steps soon on a lease extension. Reuben was able to extend his lease just under the wire in July. Reuben and the freeholder via the management company ultimately agreed on sum of £5,000 . If he had missed the deadline, the premium would have escalated by a minimum £1,000.
In 2011 we were phoned by Dr V Thomas who, having bought a one bedroom apartment in Desborough in July 2008. The question was if we could approximate the premium would likely be for a 90 year lease extension. Identical residencies in Desborough with a long lease were worth £243,000. The average ground rent payable was £65 collected per annum. The lease ran out in 2089. Taking into account 63 years as a residual term we calculated the premium to the landlord to extend the lease to be within £20,000 and £23,000 not including fees.
Last year we were contacted by Ms Katherine Clarke , who completed a garden apartment in Desborough in August 1996. We are asked if we could approximate the premium could be for a ninety year lease extension. Similar residencies in Desborough with a long lease were valued around £181,600. The mid-range amount of ground rent was £55 invoiced annually. The lease finished in 2078. Given that there were 52 years outstanding we approximated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 not including legals.