The value of Leamington Spa leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the unexpired lease term is less than eighty years
Leasehold residencies in Leamington Spa with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| 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. |
Lease extensions in Leamington Spa can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Leamington Spa lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Jonathan, started to get close to the 80-year threshold with the lease on his basement apartment in Leamington Spa. In buying his home two decades ago, the length of the lease was of no interest. Thankfully, he noticed he needed to take action soon on Extending the lease. Jonathan arranged for a lease extension just under the wire in April. Jonathan and the landlord who owned the flat above in the end agreed on sum of £5,500 . If the lease had slipped below eighty years, the price would have increased by at least £1,050.
In 2014 we were contacted by Mr and Mrs. G Sánchez who, having completed a basement flat in Leamington Spa in August 2006. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Similar properties in Leamington Spa with 100 year plus lease were in the region of £255,000. The average ground rent payable was £50 billed quarterly. The lease expired on 21 September 2095. Having 70 years outstanding we calculated the premium to the freeholder for the lease extension to be between £10,500 and £12,000 not including expenses.
Mr S Miller purchased a purpose-built flat in Leamington Spa in March 2012. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Comparable residencies in Leamington Spa with 100 year plus lease were worth £246,800. The average ground rent payable was £60 collected monthly. The lease lapsed in 2075. Taking into account 50 years as a residual term we approximated the premium to the landlord to extend the lease to be between £44,700 and £51,600 plus fees.