The value of Laindon 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 significantly once the remaining term is below than 80 years
Leasehold residencies in Laindon with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Using our service will provide you increased control over the value of your Laindon leasehold, as your property will be more valuable and saleable in relation to the 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.
Connor was the the leasehold owner of a high value apartment in Laindon on the market with a lease of just over sixty years unexpired. Connor informally contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Connor to exercise his statutory right. Connor procured expert advice and was able to make an informed judgement and handle with the matter and sell the property.
Last month we were phoned by Ms Megan Nelson , who purchased a studio flat in Laindon in May 1997. The dilemma was if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparable residencies in Laindon with an extended lease were worth £245,000. The mid-range amount of ground rent was £50 billed monthly. The lease finished in 2094. Considering the 68 years left we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.
In 2010 we were contacted by Mr Stanley Alexander who, having was assigned a lease of a one bedroom apartment in Laindon in November 2002. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparable properties in Laindon with an extended lease were in the region of £285,000. The average amount of ground rent was £55 billed every twelve months. The lease concluded on 18 April 2105. Having 79 years outstanding we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of costs.