Leeswood leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Leeswood residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Leeswood you should see if your lease has between 70 and 90 years left. There are compelling reasons why a Leeswood flat owner with a lease having around eighty years unexpired should take steps to ensure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Leeswood,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Leeswood valuers.
Harrison was the the leasehold proprietor of a high value flat in Leeswood being sold with a lease of a few days over sixty years unexpired. Harrison on an informal basis contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 per annum. No ground rent would be due on a lease extension were Harrison to exercise his statutory right. Harrison procured expert advice and secured satisfactory deal informally and sell the property.
Mr and Mrs. S Khan took over the lease of a studio apartment in Leeswood in August 2010. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Comparative premises in Leeswood with a long lease were valued about £189,000. The mid-range ground rent payable was £55 billed every twelve months. The lease ran out in 2079. Taking into account 53 years remaining we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of expenses.
In 2011 we were e-mailed by Dr E Norbert who, having completed a studio flat in Leeswood in April 2012. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Comparable premises in Leeswood with 100 year plus lease were valued around £290,000. The mid-range ground rent payable was £45 billed annually. The lease came to a finish in 2099. Having 73 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.