The market value of a leasehold property in Longbenton depends on how many years the lease has remaining. If it is close to or less than 80 years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. Ideally one should start the process of extending the lease is when a lease still has 82 years to run so that formalities can be addressed prior to the 80 year threshold. Statute enables Longbenton qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus an additional term of 90 years. The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Using our service gives you increased control over the value of your Longbenton 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 are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of unsuccessful discussions with the freeholder of her leasehold apartment in Longbenton, Georgina commenced the lease extension process as the eighty year mark was rapidly coming. The legal work was concluded in November 2006. The landlord’s charges were kept to an absolute minimum.
Dr P Gunderson moved into a studio flat in Longbenton in March 2005. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Comparable premises in Longbenton with a long lease were in the region of £181,600. The mid-range ground rent payable was £55 collected quarterly. The lease expiry date was on 20 October 2078. Considering the 52 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of legals.
Last Winter we were phoned by Mr and Mrs. H Rivera , who completed a basement apartment in Longbenton in October 1995. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Comparative residencies in Longbenton with a long lease were valued around £290,000. The mid-range ground rent payable was £45 invoiced monthly. The lease ended on 3 March 2098. Given that there were 72 years unexpired we approximated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 plus legals.