The value of Dunnington 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 substantially once the unexpired lease term is less than eighty years
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| 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. |
Lease extensions in Dunnington can be a difficult process. We recommend you get guidance from a lawyer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Dunnington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Kian, came precariously close to the eighty-year threshold with the lease on his leasehold flat in Dunnington. In buying his home 18 years ago, the lease term was of minimal concern. As luck would have it, he recognised he needed to take steps soon on a lease extension. Kian extended the lease at the eleventh hour last June. Kian and the freeholder via the management company in the end agreed on an amount of £5,000 . If the lease had gone below 80 years, the premium would have escalated by at least £875.
Mr and Mrs. M Martinez moved into a one bedroom flat in Dunnington in June 1998. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Comparative premises in Dunnington with 100 year plus lease were worth £295,000. The average ground rent payable was £50 billed per annum. The lease came to a finish on 19 July 2100. Having 75 years unexpired we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including costs.
In 2011 we were phoned by Ms V Davies who, having acquired a purpose-built apartment in Dunnington in March 1999. The question was if we could estimate the premium could be for a ninety year extension to my lease. Comparable properties in Dunnington with 100 year plus lease were in the region of £250,400. The average amount of ground rent was £65 collected every twelve months. The lease ended in 2089. Having 64 years as a residual term we approximated the premium to the landlord for the lease extension to be within £19,000 and £22,000 not including fees.