The value of Hyde 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 substantially once the remaining term is less than 80 years
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Hyde,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hyde valuers.
Last October Muhammad, started to get close to the eighty-year mark with the lease on his studio apartment in Hyde. Having bought his property two decades ago, the length of the lease was of little relevance. As luck would have it, he realised he would soon be paying an inflated amount for a lease extension. Muhammad arranged for a lease extension at the eleventh hour last May. Muhammad and the freeholder subsequently settled on a premium of £5,500 . If the lease had dipped lower than 80 years, the premium would have escalated by a minimum £875.
Dr Archie Smith completed a one bedroom apartment in Hyde in November 1995. We are asked if we could estimate the premium would likely be to extend the lease by ninety years. Identical premises in Hyde with a long lease were worth £216,000. The average amount of ground rent was £60 invoiced yearly. The lease expired in 2083. Taking into account 58 years remaining we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including legals.
Mr and Mrs. E Kelly owned a one bedroom apartment in Hyde in April 2005. We are asked if we could estimate the price could be for a 90 year extension to my lease. Identical flats in Hyde with an extended lease were worth £200,000. The average amount of ground rent was £50 collected every twelve months. The lease ended in 2103. Considering the 78 years remaining we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including fees.