The market value of Didcot 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 escalate materialy once the remaining term is below than 80 years
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
Irrespective of whether you are a tenant or a freeholder in Didcot,the lease extension solicitors 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 Didcot valuers.
Following protracted discussions with the landlord of her one bedroom apartment in Didcot, Olivia initiated the lease extension process just as the lease was nearing the critical eighty-year threshold. The lease extension completed in June 2010. The freeholder’s charges were restricted to less than 700 GBP.
Last Christmas we were contacted by Dr E Davies , who purchased a ground floor apartment in Didcot in September 1998. The question was if we could estimate the premium would be for a 90 year extension to my lease. Comparable premises in Didcot with a long lease were valued about £260,000. The mid-range ground rent payable was £50 collected monthly. The lease terminated on 12 October 2096. Taking into account 71 years remaining we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including expenses.
Mr and Mrs. G Anderson acquired a purpose-built flat in Didcot in October 2012. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Similar homes in Didcot with an extended lease were in the region of £254,200. The average ground rent payable was £60 collected monthly. The lease finished on 17 June 2076. Considering the 51 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £43,700 and £50,600 not including costs.