The value of Desford leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate materialy once the remaining term is below than 80 years
Leasehold residencies in Desford with over one hundred years unexpired on the lease are often referred to as ‘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 upside in buying the freehold unless savings on ground rent and estate 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. |
| 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. |
| 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 landlord in Desford,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Desford valuers.
Following unsuccessful correspondence with the landlord of her one bedroom apartment in Desford, Isobel commenced the lease extension process just as the lease was approaching the all-important eighty-year deadline. The lease extension was concluded in November 2009. The freeholder’s costs were kept to an absolute minimum.
Mr B Bennett moved into a newly refurbished flat in Desford in June 2000. We are asked if we could approximate the price would likely be to extend the lease by a further 90 years. Comparable flats in Desford with an extended lease were in the region of £265,000. The average ground rent payable was £50 billed every twelve months. The lease lapsed in 2098. Having 73 years remaining we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.
Last month we were approach by Dr Charlie Cooper , who purchased a one bedroom apartment in Desford in January 1999. The question was if we could estimate the premium could be to prolong the lease by a further 90 years. Identical residencies in Desford with an extended lease were valued around £264,000. The average amount of ground rent was £60 billed quarterly. The lease terminated on 9 January 2078. Considering the 53 years remaining we estimated the premium to the freeholder for the lease extension to be within £37,100 and £42,800 exclusive of expenses.