The value of March leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate significantly once the unexpired lease term is less than 80 years
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in March can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with March lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted discussions with the freeholder of her leasehold apartment in March, Rhiannon commenced the lease extension process as the eighty year threshold was swiftly nearing. The transaction was finalised in February 2010. The landlord’s charges were restricted to about 600 pounds.
In 2011 we were phoned by Mr and Mrs. M David who, having bought a purpose-built apartment in March in March 2002. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable properties in March with a long lease were valued about £243,000. The mid-range amount of ground rent was £65 billed yearly. The lease lapsed on 17 May 2087. Taking into account 63 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 plus expenses.
In 2011 we were contacted by Mrs Katie Walker who, having purchased a recently refurbished apartment in March in June 2002. The question was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Identical properties in March with a long lease were valued around £181,600. The average ground rent payable was £55 collected monthly. The lease came to a finish in 2076. Having 52 years remaining we estimated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of professional charges.