The value of Leek 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 less than 80 years
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure Leek lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
After protracted negotiations with the freeholder of her first floor flat in Leek, Chelsea started the lease extension process as the eighty year deadline was fast advancing. The lease extension completed in September 2009. The landlord’s charges were kept to an absolute minimum.
Mr Jude Allen moved into a one bedroom flat in Leek in September 2004. We are asked if we could approximate the price would be for a 90 year extension to my lease. Comparative flats in Leek with a long lease were valued around £261,600. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease ended on 6 February 2078. Considering the 52 years remaining we approximated the premium to the landlord for the lease extension to be between £39,000 and £45,000 not including fees.
Mr D Nelson completed a garden apartment in Leek in November 2012. The question was if we could estimate the price would be for a ninety year extension to my lease. Comparative residencies in Leek with an extended lease were valued around £218,000. The mid-range amount of ground rent was £45 billed annually. The lease expired on 15 April 2089. Given that there were 63 years remaining we estimated the compensation to the freeholder for the lease extension to be within £17,100 and £19,800 exclusive of expenses.