Lanchester residential property owned on a long lease is a wasting asset as the leaseholder merely owns the property for a period of years.
Leasehold residencies in Lanchester with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Lanchester,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Lanchester valuers.
Half a year ago Zachary, started to get close to the 80-year mark with the lease on his basement apartment in Lanchester. Having purchased his property twenty years previously, the length of the lease was of little concern. by good luck, he recognised he would soon be paying an inflated amount for Extending the lease. Zachary was able to extend his lease at the eleventh hour last March. Zachary and the landlord who owned the flat above subsequently agreed on an amount of £6,000 . If he had missed the deadline, the amount would have escalated by a minimum £975.
In 2010 we were approached by Mr W Gray who, having moved into a garden apartment in Lanchester in October 2012. We are asked if we could estimate the price could be to extend the lease by 90 years. Comparative residencies in Lanchester with 100 year plus lease were in the region of £254,200. The mid-range ground rent payable was £60 invoiced per annum. The lease ended in 2076. Considering the 51 years outstanding we estimated the premium to the landlord to extend the lease to be between £43,700 and £50,600 not including legals.
Mr Michael Mitchell purchased a garden flat in Lanchester in January 1995. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Identical flats in Lanchester with 100 year plus lease were valued about £210,600. The average amount of ground rent was £45 billed per annum. The lease ran out in 2087. Taking into account 62 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of fees.