The value of Guildford 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 increase significantly once the unexpired lease term is less than 80 years
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Lease extensions in Guildford can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Guildford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Theo, started to get near to the eighty-year threshold with the lease on his purpose- built flat in Guildford. Having purchased his home two decades ago, the lease term was of no importance. by good luck, he noticed he needed to take steps soon on Extending the lease. Theo extended the lease just under the wire in April. Theo and the landlord who owned the flat above subsequently agreed on the final figure of £6,000 . If he failed to meet the deadline, the amount would have increased by at least £1,000.
Last year we were called by Ms F Lewis , who purchased a purpose-built apartment in Guildford in January 1999. The dilemma was if we could estimate the premium would be for a 90 year extension to my lease. Identical flats in Guildford with a long lease were valued around £223,400. The average ground rent payable was £60 collected every twelve months. The lease lapsed on 6 April 2085. Taking into account 59 years remaining we calculated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 exclusive of fees.
Dr N Lee acquired a ground floor apartment in Guildford in February 1999. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable flats in Guildford with a long lease were in the region of £205,000. The mid-range amount of ground rent was £50 collected per annum. The lease expiry date was in 2105. Taking into account 79 years outstanding we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of costs.