The value of Market Drayton 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 substantially once the remaining term is less than eighty years
Leasehold premises in Market Drayton with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| Coventry Building Society | 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. |
| 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. |
| Yorkshire Building Society | 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. |
Using our service will provide you enhanced control over the value of your Market Drayton leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After protracted discussions with the freeholder of her purpose-built apartment in Market Drayton, Maisie started the lease extension process just as the lease was coming close to the all-important eighty-year mark. The transaction completed in March 2011. The freeholder’s costs were kept to an absolute minimum.
Mr Harrison Roux owned a one bedroom apartment in Market Drayton in April 2003. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparative homes in Market Drayton with a long lease were worth £260,200. The mid-range ground rent payable was £65 invoiced monthly. The lease lapsed in 2091. Considering the 66 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 not including legals.
Last month we were called by Dr Leo Bailey , who acquired a first floor apartment in Market Drayton in January 2004. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Similar residencies in Market Drayton with a long lease were valued around £198,800. The mid-range amount of ground rent was £55 collected quarterly. The lease finished on 19 September 2080. Considering the 55 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 plus fees.