The value of East Bergholt 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 unexpired lease term is less than eighty years
Leasehold premises in East Bergholt with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you increased control over the value of your East Bergholt leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Ryan, started to get near to the eighty-year mark with the lease on his studio flat in East Bergholt. In buying his flat two decades ago, the lease term was of minimal significance. Fortunately, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Ryan arranged for a lease extension just ahead of time last August. Ryan and the landlord in the end settled on an amount of £5,500 . If the lease had dropped lower than 80 years, the price would have escalated by at least £950.
Last Autumn we were called by Ms D Hill , who was assigned a lease of a garden flat in East Bergholt in February 2012. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Comparable properties in East Bergholt with an extended lease were valued about £176,200. The average ground rent payable was £65 invoiced quarterly. The lease ended in 2082. Given that there were 56 years left we calculated the compensation to the landlord for the lease extension to be between £29,500 and £34,000 plus legals.
Ms G Collins completed a one bedroom flat in East Bergholt in July 1998. We are asked if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparative premises in East Bergholt with 100 year plus lease were in the region of £237,600. The mid-range ground rent payable was £45 collected per annum. The lease elapsed in 2093. Considering the 67 years remaining we approximated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 not including costs.