Griffithstown residential property owned on a long lease is a wasting asset because a leaseholder merely owns the property for a set term.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence 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. |
| 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. |
| Halifax | 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Griffithstown can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor 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 Griffithstown lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jackson owned a high value flat in Griffithstown being sold with a lease of fraction over 72 years unexpired. Jackson on an informal basis contacted 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 an increased rent to £100 yearly. No ground rent would be due on a lease extension were Jackson to exercise his statutory right. Jackson procured expert legal guidance and secured satisfactory deal informally and sell the property.
Last year we were contacted by Dr J Díaz , who owned a one bedroom apartment in Griffithstown in October 1996. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Similar premises in Griffithstown with an extended lease were in the region of £210,000. The average amount of ground rent was £50 collected per annum. The lease ran out in 2106. Having 80 years unexpired we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including expenses.
In 2011 we were e-mailed by Mr Dylan Cook who, having took over the lease of a first floor flat in Griffithstown in February 1996. The dilemma was if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Comparable flats in Griffithstown with a long lease were valued about £275,000. The average ground rent payable was £45 collected monthly. The lease came to a finish on 22 June 2095. Considering the 69 years left we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including fees.