For those whose Emsworth property is held on a long lease, our message is clear – if no remedial action is taken, the property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you enhanced control over the value of your Emsworth leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last Christmas Kyle, came dangerously close to the eighty-year threshold with the lease on his leasehold apartment in Emsworth. In buying his flat twenty years previously, the unexpired term was of little relevance. by good luck, he became aware that he would imminently be paying an escalated premium for a lease extension. Kyle arranged for a lease extension at the eleventh hour in May. Kyle and the freeholder eventually agreed on the final figure of £5,500 . If the lease had dipped to less than eighty years, the sum would have gone up by a minimum £900.
Last Spring we were approach by Mrs A Flores , who acquired a studio apartment in Emsworth in April 1997. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Comparative residencies in Emsworth with 100 year plus lease were worth £174,200. The average amount of ground rent was £55 collected quarterly. The lease terminated in 2076. Given that there were 51 years left we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 not including expenses.
Mr J Davies owned a basement flat in Emsworth in September 2001. The dilemma was if we could approximate the price would likely be to extend the lease by an additional years. Similar premises in Emsworth with 100 year plus lease were valued about £285,000. The average amount of ground rent was £45 collected quarterly. The lease lapsed on 16 April 2096. Having 71 years as a residual term we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.