The market value of a leasehold property in Immingham is impacted by how long the lease has remaining. If it is close to or fewer than eighty years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended before buying. It is ideal to start the lease extension process when the lease still has 82 years to run so that a lease extension can be addressed well before the eighty year threshold. Statute enables Immingham qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with in excess of one hundred 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 residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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. |
Using our service gives you better control over the value of your Immingham leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Luca, started to get close to the 80-year mark with the lease on his one bedroom flat in Immingham. Having purchased his flat two decades ago, the length of the lease was of minimal bearing. Fortunately, he recognised he needed to take action soon on a lease extension. Luca was able to extend his lease just in the nick of time last March. Luca and the landlord who owned the flat above ultimately agreed on sum of £5,000 . If the lease had slid below 80 years, the amount would have gone up by at least £950.
Last Autumn we were phoned by Mr and Mrs. G Harris , who owned a purpose-built apartment in Immingham in July 1998. The dilemma was if we could approximate the premium could be to prolong the lease by a further 90 years. Identical homes in Immingham with an extended lease were in the region of £198,400. The mid-range amount of ground rent was £65 collected annually. The lease concluded on 6 November 2084. Having 59 years as a residual term we approximated the premium to the landlord to extend the lease to be between £21,900 and £25,200 not including fees.
Mrs W Ward moved into a studio apartment in Immingham in May 2006. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by 90 years. Similar properties in Immingham with an extended lease were in the region of £255,000. The mid-range ground rent payable was £50 billed per annum. The lease concluded in 2095. Given that there were 70 years outstanding we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus legals.