The market value of Leominster leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the unexpired lease term is less than eighty years
Leasehold properties in Leominster with more than one hundred years left 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 situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 75 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Leominster can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor with experience in this area.
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 a wealth of experience dealing with Leominster lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted discussions with the landlord of her garden flat in Leominster, Phoebe initiated the lease extension process just as her lease was coming close to the critical eighty-year threshold. The legal work completed in February 2005. The landlord’s fees were negotiated to less than 700 pounds.
Last month we were contacted by Dr Harry Richardson , who owned a one bedroom flat in Leominster in April 1996. The question was if we could estimate the premium would be for a ninety year lease extension. Comparative properties in Leominster with an extended lease were valued about £218,400. The mid-range ground rent payable was £60 collected per annum. The lease ran out in 2085. Taking into account 59 years left we estimated the compensation to the landlord for the lease extension to be between £27,600 and £31,800 not including professional charges.
In 2013 we were phoned by Mr Callum Dupont who, having was assigned a lease of a one bedroom apartment in Leominster in August 2011. The question was if we could approximate the premium would likely be for a 90 year lease extension. Comparable properties in Leominster with an extended lease were worth £205,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease terminated on 25 March 2105. Taking into account 79 years remaining we estimated the premium to the freeholder to extend the lease to be within £7,600 and £8,800 plus fees.