The market value of Ipswich leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase substantially once the unexpired lease term is less than 80 years
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Retaining our service will provide you enhanced control over the value of your Ipswich leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful negotiations with the freeholder of her garden apartment in Ipswich, Yasmin initiated the lease extension process as the 80 year threshold was swiftly advancing. The legal work completed in January 2005. The freeholder’s fees were kept to an absolute minimum.
In 2012 we were contacted by Mrs V Sharif who, having completed a basement flat in Ipswich in February 1999. The dilemma was if we could approximate the price could be to extend the lease by a further 90 years. Similar properties in Ipswich with a long lease were in the region of £206,200. The average amount of ground rent was £55 collected monthly. The lease came to a finish in 2082. Having 56 years remaining we calculated the premium to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of fees.
Ms Louise Jackson was assigned a lease of a one bedroom apartment in Ipswich in August 2006. We are asked if we could estimate the price could be for a 90 year extension to my lease. Identical homes in Ipswich with an extended lease were worth £300,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease termination date was on 22 September 2102. Having 76 years remaining we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including fees.