The value of Fordingbridge 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 significantly once the unexpired lease term is below than eighty years
It is generally considered that a residential leasehold with over 100 years unexpired lease term 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 |
|---|---|
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Lease extensions in Fordingbridge can be a difficult process. We recommend you obtain guidance from a lawyer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Fordingbridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
18 months ago Riley, came critically near to the 80-year threshold with the lease on his basement flat in Fordingbridge. In buying his home two decades ago, the unexpired term was of little bearing. by good luck, he recognised he would imminently be paying an escalated premium for Extending the lease. Riley arranged for a lease extension just under the wire last March. Riley and the freeholder via the managing agents subsequently agreed on the final figure of £6,000 . If he not met the deadline, the amount would have become more costly by at least £975.
Last month we were approach by Mr and Mrs. N Bonnet , who purchased a one bedroom apartment in Fordingbridge in May 2010. The question was if we could approximate the price would likely be to prolong the lease by 90 years. Comparative premises in Fordingbridge with an extended lease were worth £171,800. The average ground rent payable was £55 invoiced quarterly. The lease elapsed on 2 November 2076. Taking into account 50 years unexpired we estimated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of costs.
In 2014 we were phoned by Mr and Mrs. A Morgan who, having moved into a one bedroom apartment in Fordingbridge in June 2001. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Similar homes in Fordingbridge with an extended lease were worth £280,000. The mid-range ground rent payable was £45 billed yearly. The lease ran out on 3 September 2096. Given that there were 70 years outstanding we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including costs.