Longford residential property owned on a long lease is a depreciating asset because a leaseholder merely owns the property for a set term.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Regardless of whether you are a tenant or a freeholder in Longford,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Longford valuers.
Two years ago Stanley, came dangerously near to the 80-year mark with the lease on his ground floor apartment in Longford. Having bought his flat two decades ago, the unexpired term was of minimal interest. Luckily, he recognised he would soon be paying way over the odds for Extending the lease. Stanley arranged for a lease extension at the eleventh hour last January. Stanley and the landlord who owned the flat above eventually settled on the final figure of £5,500 . If he not met the deadline, the figure would have increased by a minimum £950.
Last Winter we were phoned by Mr and Mrs. R Bailey , who was assigned a lease of a purpose-built flat in Longford in April 1997. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Comparable flats in Longford with an extended lease were worth £264,000. The mid-range amount of ground rent was £60 invoiced quarterly. The lease lapsed on 25 September 2078. Given that there were 53 years remaining we calculated the premium to the freeholder for the lease extension to be within £37,100 and £42,800 plus expenses.
An example of a Freehold Enfranchisement case for a Longford premises is 164 Nestles Avenue in October 2013. The tribunal agreed with the proposed price of £20,158 for the freehold and determined that that sum is the amount to be paid into court This case affected 2 flats. The unexpired residue of the current lease was 69 years.