For those whose Navenby flat is held on a long lease, the message is clear – if you ignore the situation, the property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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 gives you increased control over the value of your Navenby leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted correspondence with the freeholder of her two bedroom flat in Navenby, Charlotte started the lease extension process as the eighty year mark was rapidly coming. The legal work completed in October 2014. The landlord’s charges were kept to an absolute minimum.
Mrs T Roberts bought a one bedroom flat in Navenby in November 2010. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Comparable flats in Navenby with an extended lease were valued around £250,400. The mid-range amount of ground rent was £65 billed monthly. The lease expiry date was in 2089. Having 64 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 exclusive of fees.
Last Summer we were approach by Dr Ryan Mason , who took over the lease of a first floor flat in Navenby in September 2009. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparative premises in Navenby with an extended lease were worth £189,000. The average ground rent payable was £55 collected annually. The lease expired in 2078. Taking into account 53 years remaining we approximated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of fees.