Guisborough residential property owned on a long lease is a wasting asset because a leaseholder merely owns the property for a period of years.
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you better control over the value of your Guisborough leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Ibrahim was the the leasehold proprietor of a studio apartment in Guisborough on the market with a lease of a few days over 59 years left. Ibrahim on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Ibrahim to exercise his statutory right. Ibrahim obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the property.
Mr and Mrs. I Hernández bought a first floor flat in Guisborough in October 2005. The question was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar premises in Guisborough with a long lease were worth £250,000. The mid-range ground rent payable was £50 billed annually. The lease lapsed in 2094. Considering the 69 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.
Dr L Vincent was assigned a lease of a one bedroom flat in Guisborough in April 1997. The question was if we could approximate the price would be for a 90 year extension to my lease. Comparable flats in Guisborough with a long lease were valued around £290,000. The average ground rent payable was £60 invoiced annually. The lease concluded on 21 March 2105. Taking into account 80 years remaining we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including expenses.