The value of Goodrich leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the unexpired lease term is less than 80 years
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 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 |
|---|---|
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Goodrich can be a difficult process. We recommend you get professional help from a conveyancing solicitor 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 Goodrich lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Samuel, started to get near to the eighty-year threshold with the lease on his ground floor flat in Goodrich. In buying his property 19 years ago, the lease term was of minimal importance. by good luck, he realised he would soon be paying an escalated premium for a lease extension. Samuel was able to extend his lease at the eleventh hour last April. Samuel and the freeholder via the management company eventually agreed on an amount of £5,500 . If the lease had descended to less than 80 years, the amount would have escalated by at least £1,150.
Last Autumn we were contacted by Dr Gemma Collins , who acquired a purpose-built apartment in Goodrich in February 2010. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Similar homes in Goodrich with a long lease were in the region of £300,000. The average amount of ground rent was £50 billed every twelve months. The lease concluded in 2101. Having 76 years outstanding we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus expenses.
In 2011 we were approached by Mr and Mrs. H Flores who, having purchased a basement apartment in Goodrich in August 1996. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable homes in Goodrich with an extended lease were in the region of £257,800. The mid-range amount of ground rent was £65 collected monthly. The lease lapsed on 5 April 2090. Having 65 years as a residual term we estimated the premium to the landlord for the lease extension to be between £17,100 and £19,800 plus expenses.