Ludgershall residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a set term.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barnsley Building Society | |
| Leeds Building Society | |
| Nationwide Building Society |
The conveyancers that we work with handle Ludgershall lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Off the back of protracted correspondence with the landlord of her garden flat in Ludgershall, Mia started the lease extension process just as the lease was approaching the crucial 80-year threshold. The transaction completed in June 2012. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. E David moved into a ground floor apartment in Ludgershall in November 1997. The dilemma was if we could estimate the premium would likely be to extend the lease by a further 90 years. Similar properties in Ludgershall with a long lease were in the region of £270,000. The mid-range ground rent payable was £55 collected yearly. The lease ended on 3 February 2101. Having 75 years outstanding we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.
In 2012 we were e-mailed by Dr A Cook who, having took over the lease of a studio flat in Ludgershall in September 2005. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year lease extension. Similar residencies in Ludgershall with an extended lease were worth £168,800. The average ground rent payable was £60 invoiced every twelve months. The lease expired on 24 August 2081. Given that there were 55 years left we approximated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 plus legals.