The value of Elland 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 increase significantly once the unexpired lease term is below than 80 years
It is generally accepted that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Elland,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Elland valuers.
Last October Reuben, came critically near to the 80-year mark with the lease on his two bedroom flat in Elland. In buying his home two decades ago, the lease term was of no concern. As luck would have it, he noticed he would imminently be paying an inflated amount for Extending the lease. Reuben extended the lease just under the wire in March. Reuben and the freeholder via the management company subsequently agreed on sum of £5,500 . If he not met the deadline, the amount would have escalated by a minimum £875.
Dr Muhammad Phillips was assigned a lease of a purpose-built apartment in Elland in October 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparative premises in Elland with a long lease were valued around £200,000. The mid-range amount of ground rent was £50 billed per annum. The lease concluded in 2102. Given that there were 77 years unexpired we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of expenses.
Dr Kian Mercier completed a basement flat in Elland in January 2011. The dilemma was if we could estimate the price would likely be to prolong the lease by an additional years. Similar properties in Elland with 100 year plus lease were valued around £260,200. The average amount of ground rent was £65 collected every twelve months. The lease came to a finish on 14 August 2091. Having 66 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £15,200 and £17,600 not including fees.