The market value of Laceby 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 unexpired lease term is below than 80 years
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Yorkshire 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. |
Retaining our service will provide you better control over the value of your Laceby leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Leo, started to get near to the eighty-year threshold with the lease on his two bedroom flat in Laceby. In buying his flat two decades ago, the length of the lease was of no interest. Fortunately, he became aware that he would soon be paying an escalated premium for a lease extension. Leo arranged for a lease extension at the eleventh hour in April. Leo and the landlord who owned the flat above subsequently settled on sum of £6,000 . If he not met the deadline, the figure would have increased by at least £1,075.
In 2009 we were approached by Mrs U González who, having acquired a newly refurbished flat in Laceby in November 2000. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Identical flats in Laceby with a long lease were valued around £260,000. The average ground rent payable was £50 collected yearly. The lease came to a finish in 2098. Considering the 72 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.
Last Christmas we were contacted by Ms Megan Girard , who moved into a purpose-built apartment in Laceby in August 2000. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Similar premises in Laceby with an extended lease were worth £256,600. The average amount of ground rent was £60 billed annually. The lease expired on 18 July 2078. Taking into account 52 years unexpired we calculated the premium to the landlord to extend the lease to be within £39,000 and £45,000 exclusive of expenses.