Dosthill residential property owned on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before 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. |
Regardless of whether you are a tenant or a landlord in Dosthill,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 in-depth market knowledge and the close ties they enjoy with Dosthill valuers.
18 months ago Jacob, came dangerously near to the eighty-year mark with the lease on his studio flat in Dosthill. Having bought his property 18 years previously, the unexpired term was of little significance. Luckily, he became aware that he would imminently be paying an inflated amount for a lease extension. Jacob extended the lease at the eleventh hour in June. Jacob and the freeholder via the management company ultimately agreed on sum of £5,000 . If he had missed the deadline, the figure would have become more costly by a minimum £975.
Mr and Mrs. T Simon bought a studio apartment in Dosthill in February 2006. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Identical flats in Dosthill with a long lease were in the region of £270,000. The average amount of ground rent was £55 billed every twelve months. The lease lapsed on 25 July 2101. Taking into account 75 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus legals.
Last Summer we were phoned by Dr K Peterson , who purchased a ground floor flat in Dosthill in July 1995. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Similar flats in Dosthill with a long lease were in the region of £173,800. The mid-range ground rent payable was £60 invoiced yearly. The lease came to a finish in 2081. Considering the 55 years outstanding we estimated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus fees.