Groby residential property held on a long lease is a wasting asset because a leaseholder only owns the property for a set term.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you increased control over the value of your Groby leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last Christmas Reuben, came perilously near to the 80-year threshold with the lease on his ground floor apartment in Groby. Having purchased his home 19 years ago, the length of the lease was of little importance. by good luck, he recognised he would soon be paying way over the odds for Extending the lease. Reuben arranged for a lease extension just ahead of time in August. Reuben and the landlord ultimately agreed on the final figure of £5,500 . If he not met the deadline, the price would have increased by at least £1,125.
Mr and Mrs. C Patel was assigned a lease of a purpose-built apartment in Groby in July 2004. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar flats in Groby with 100 year plus lease were valued around £250,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease termination date was in 2093. Taking into account 68 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £10,500 and £12,000 plus legals.
Mr and Mrs. W Collins moved into a basement apartment in Groby in March 2005. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Identical properties in Groby with a long lease were in the region of £285,000. The average amount of ground rent was £55 invoiced every twelve months. The lease concluded in 2104. Considering the 79 years left we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.