The value of Hellesdon 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 materialy once the remaining term is below than eighty years
Leasehold residencies in Hellesdon with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
Engaging our service gives you increased control over the value of your Hellesdon leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Oliver, came dangerously close to the 80-year mark with the lease on his purpose- built apartment in Hellesdon. In buying his property two decades ago, the unexpired term was of minimal importance. As luck would have it, he noticed he needed to take action soon on Extending the lease. Oliver arranged for a lease extension at the eleventh hour in August. Oliver and the landlord who owned the flat above subsequently agreed on the final figure of £6,000 . If he had missed the deadline, the figure would have gone up by a minimum £875.
Last Autumn we were contacted by Mr I Wood , who purchased a newly refurbished flat in Hellesdon in March 1996. We are asked if we could approximate the premium could be to extend the lease by ninety years. Identical flats in Hellesdon with 100 year plus lease were valued about £218,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease expired on 12 June 2089. Given that there were 63 years outstanding we estimated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 not including costs.
Dr O Collins acquired a one bedroom apartment in Hellesdon in August 1997. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Identical flats in Hellesdon with a long lease were valued around £265,000. The mid-range amount of ground rent was £50 billed monthly. The lease ran out in 2100. Taking into account 74 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.