Chances are that where you own a flat in Emsworth you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Retaining our service gives you increased control over the value of your Emsworth leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Reuben was the the leasehold proprietor of a conversion apartment in Emsworth on the market with a lease of a little over fifty eight years left. Reuben on an informal basis spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Reuben to invoke his statutory right. Reuben procured expert advice and was able to make a more informed decision and deal with the matter and sell the flat.
Mr and Mrs. B Bell purchased a newly refurbished apartment in Emsworth in July 2012. The dilemma was if we could shed any light on how much (approximately) premium would be to prolong the lease by an additional years. Comparative properties in Emsworth with an extended lease were worth £216,000. The average ground rent payable was £60 billed per annum. The lease came to a finish on 26 May 2083. Considering the 58 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 plus fees.
In 2013 we were contacted by Dr T Smith who, having purchased a garden apartment in Emsworth in January 2005. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by ninety years. Comparative properties in Emsworth with 100 year plus lease were worth £200,000. The average amount of ground rent was £50 invoiced quarterly. The lease lapsed on 3 February 2103. Having 78 years outstanding we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus fees.