The 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 escalate substantially once the remaining term is less than eighty years
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| 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. |
The conveyancing solicitors that we work with undertake Emsworth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In the wake of 9 months of protracted discussions with the landlord of her first floor apartment in Emsworth, Katherine started the lease extension process just as the lease was nearing the all-important eighty-year deadline. The legal work completed in June 2013. The freeholder’s fees were kept to an absolute minimum.
In 2011 we were e-mailed by Mr L Laurent who, having took over the lease of a studio apartment in Emsworth in April 2002. The question was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Identical premises in Emsworth with a long lease were worth £205,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease concluded on 18 August 2105. Having 79 years left we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of costs.
In 2014 we were phoned by Mr and Mrs. V Dupont who, having took over the lease of a one bedroom apartment in Emsworth in August 2003. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Comparable properties in Emsworth with an extended lease were worth £275,000. The average amount of ground rent was £65 collected quarterly. The lease finished in 2094. Taking into account 68 years left we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus legals.