The market value of Littleborough 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 increase materialy once the unexpired lease term is less than eighty years
Leasehold properties in Littleborough with in excess of 100 years unexpired 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 circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
|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.|
|Barnsley Building Society||60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.|
|Birmingham Midshires||Minimum 70 years from the date of the mortgage.|
|Lloyds TSB Scotland||Minimum 70 years from the date of the mortgage.|
|Virgin||85 years at the time of completion. If it's less, we require it to be extended on or before completion.|
Using our service gives you increased control over the value of your Littleborough leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Jack, started to get near to the 80-year threshold with the lease on his purpose- built apartment in Littleborough. In buying his property two decades ago, the unexpired term was of minimal relevance. Fortunately, it dawned on him that he would soon be paying an escalated premium for a lease extension. Jack arranged for a lease extension just under the wire in April. Jack and the landlord in the end settled on sum of £5,500 . If the lease had dropped to less than 80 years, the premium would have become more exhorbitant by at least £850.
Last Summer we were called by Mr and Mrs. U Stewart , who acquired a purpose-built apartment in Littleborough in October 1996. We are asked if we could approximate the price would likely be for a 90 year lease extension. Identical homes in Littleborough with a long lease were worth £193,400. The average ground rent payable was £65 invoiced per annum. The lease ran out in 2081. Given that there were 59 years left we approximated the premium to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of expenses.
Dr L Alexander purchased a newly refurbished apartment in Littleborough in August 1996. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Similar residencies in Littleborough with an extended lease were in the region of £250,000. The average amount of ground rent was £50 collected per annum. The lease elapsed in 2092. Having 70 years left we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.