The market value of Emsworth 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 increase significantly once the unexpired lease term is below than eighty years
Leasehold residencies in Emsworth with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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. |
| 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. |
Engaging our service gives you increased control over the value of your Emsworth leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Leo, started to get near to the eighty-year threshold with the lease on his ground floor flat in Emsworth. In buying his flat two decades ago, the lease term was of no bearing. Fortunately, he noticed he needed to take action soon on Extending the lease. Leo arranged for a lease extension just in the nick of time last August. Leo and the landlord in the end settled on a premium of £6,000 . If he had missed the deadline, the price would have increased by at least £975.
Last Autumn we were approach by Mr and Mrs. W Torres , who acquired a basement apartment in Emsworth in January 2002. The question was if we could estimate the price would likely be to extend the lease by a further 90 years. Comparative properties in Emsworth with 100 year plus lease were valued around £267,600. The average amount of ground rent was £65 billed yearly. The lease finished on 10 April 2093. Having 67 years unexpired we approximated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 not including fees.
In 2012 we were contacted by Mr and Mrs. R Rogers who, having acquired a one bedroom flat in Emsworth in October 2005. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Comparative premises in Emsworth with an extended lease were worth £201,200. The mid-range amount of ground rent was £55 invoiced quarterly. The lease expired in 2082. Having 56 years left we calculated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of costs.