The market value of Longridge leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate materialy once the remaining term is less than eighty years
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Nationwide Building Society | |
| Santander | |
| TSB | |
| The Mortgage Works |
Irrespective of whether you are a tenant or a landlord in Longridge,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Longridge valuers.
During the course of the last few months David, came seriously close to the eighty-year threshold with the lease on his first floor apartment in Longridge. Having purchased his flat 18 years previously, the length of the lease was of minimal concern. Fortunately, it dawned on him that he would soon be paying way over the odds for Extending the lease. David was able to extend his lease just under the wire last March. David and the landlord in the end settled on an amount of £5,000 . If he not met the deadline, the premium would have become more exhorbitant by at least £1,100.
In 2014 we were approached by Mr and Mrs. H Morris who, having completed a studio apartment in Longridge in March 2012. The question was if we could estimate the price would likely be to extend the lease by 90 years. Comparable premises in Longridge with a long lease were valued about £260,200. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease concluded in 2092. Having 66 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £16,200 and £18,600 exclusive of fees.
Last Spring we were phoned by Mrs V Lee , who bought a one bedroom flat in Longridge in October 2005. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Identical flats in Longridge with 100 year plus lease were valued around £198,800. The average ground rent payable was £55 billed every twelve months. The lease ended in 2081. Given that there were 55 years left we approximated the premium to the landlord for the lease extension to be between £33,300 and £38,400 not including legals.