The 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 a lease extension can escalate materialy once the remaining term is less than 80 years
Leasehold properties in Leominster 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 premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Leominster can be a difficult process. We recommend you get guidance from a conveyancer 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 a wealth of experience procuring Leominster lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Hugo owned a conversion flat in Leominster on the market with a lease of just over fifty eight years left. Hugo informally approached his freeholder being a well known London-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 annually. No ground rent would be due on a lease extension were Hugo to invoke his statutory right. Hugo obtained expert legal guidance and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Mrs A González acquired a studio apartment in Leominster in July 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Comparable residencies in Leominster with an extended lease were worth £166,800. The average ground rent payable was £50 billed annually. The lease terminated on 7 May 2075. Taking into account 50 years left we estimated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 not including legals.
Mr N Murphy took over the lease of a studio apartment in Leominster in March 2012. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Comparative properties in Leominster with a long lease were in the region of £280,000. The mid-range amount of ground rent was £45 collected yearly. The lease elapsed on 2 August 2095. Given that there were 70 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including fees.