The market value of Middleton St George leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the remaining term is less than 80 years
Leasehold properties in Middleton St George with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Middleton St George,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Middleton St George valuers.
14 months ago Harvey, started to get close to the eighty-year mark with the lease on his basement flat in Middleton St George. In buying his flat twenty years ago, the unexpired term was of little bearing. Fortunately, he realised he needed to take steps soon on a lease extension. Harvey extended the lease just under the wire last June. Harvey and the freeholder subsequently settled on an amount of £6,000 . If he failed to meet the deadline, the premium would have increased by a minimum £1,025.
Dr E Richardson completed a studio flat in Middleton St George in July 2009. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Similar properties in Middleton St George with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £55 collected monthly. The lease end date was on 27 October 2102. Given that there were 77 years left we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of legals.
Last Christmas we were called by Dr Jonathan Scott , who acquired a basement apartment in Middleton St George in June 2009. The question was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar flats in Middleton St George with an extended lease were valued around £183,600. The average ground rent payable was £65 invoiced monthly. The lease came to a finish in 2082. Having 57 years remaining we calculated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 plus professional charges.