Dinnington residential property held on a long lease is a wasting asset because a leaseholder only owns the property for a period of years.
It is generally accepted 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 all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
The conveyancing solicitors that we work with procure Dinnington lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In the wake of 6 months of unsuccessful discussions with the freeholder of her leasehold apartment in Dinnington, Chantelle commenced the lease extension process just as her lease was coming close to the crucial eighty-year deadline. The lease extension was concluded in September 2014. The freeholder’s charges were restricted to approximately 500 pounds.
Last month we were e-mailed by Dr C Mason , who bought a first floor flat in Dinnington in October 2012. We are asked if we could approximate the price could be to prolong the lease by an additional years. Comparative residencies in Dinnington with an extended lease were valued about £210,000. The mid-range ground rent payable was £50 collected monthly. The lease finished in 2105. Considering the 79 years unexpired we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of costs.
In 2010 we were approached by Ms S Martin who, having was assigned a lease of a one bedroom flat in Dinnington in September 2007. We are asked if we could approximate the price would be to prolong the lease by an additional years. Similar properties in Dinnington with a long lease were valued about £275,000. The mid-range ground rent payable was £45 collected yearly. The lease came to a finish on 19 January 2095. Having 69 years outstanding we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus expenses.