The market value of Elmswell leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the unexpired lease term is less than 80 years
It is generally considered that a property with over 100 years remaining is worth roughly the equivalent 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 many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Regardless of whether you are a tenant or a landlord in Elmswell,the lease extension solicitors 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 Elmswell valuers.
Subsequent to protracted discussions with the freeholder of her ground floor flat in Elmswell, Victoria started the lease extension process as the eighty year threshold was fast nearing. The transaction was concluded in May 2010. The freeholder’s fees were kept to an absolute minimum.
In 2013 we were contacted by Mr and Mrs. K Dupont who, having took over the lease of a studio apartment in Elmswell in July 1997. The question was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar flats in Elmswell with a long lease were valued about £191,400. The mid-range ground rent payable was £55 collected per annum. The lease came to a finish in 2080. Given that there were 54 years outstanding we calculated the premium to the landlord to extend the lease to be between £34,200 and £39,600 plus legals.
Last month we were approach by Mr and Mrs. R Edwards , who owned a studio apartment in Elmswell in June 2005. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Similar premises in Elmswell with an extended lease were in the region of £295,000. The mid-range amount of ground rent was £45 collected yearly. The lease terminated on 4 March 2100. Having 74 years outstanding we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including professional charges.