Madeley residential property owned on a long lease is a wasting asset as the leaseholder only owns the property for a set term.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Retaining our service gives you enhanced control over the value of your Madeley leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Cameron owned a high value apartment in Madeley being marketed with a lease of fraction over sixty years unexpired. Cameron informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Cameron to exercise his statutory right. Cameron obtained expert advice and secured an acceptable resolution without going to tribunal and sell the flat.
In 2011 we were contacted by Mrs N Nelson who, having purchased a first floor apartment in Madeley in February 2009. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical premises in Madeley with a long lease were in the region of £267,600. The average ground rent payable was £65 billed annually. The lease concluded on 24 February 2092. Considering the 67 years unexpired we calculated the premium to the landlord for the lease extension to be between £14,300 and £16,400 not including expenses.
Dr G Davis owned a ground floor apartment in Madeley in July 2012. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparable properties in Madeley with 100 year plus lease were in the region of £201,200. The average amount of ground rent was £55 billed yearly. The lease came to a finish in 2081. Having 56 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of costs.