The re-sale value of a leasehold property in North Cave is impacted by how long the lease has left to run. If it is close to or fewer than eighty years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be addressed prior to the eighty year threshold. Leasehold Reform legislation enables North Cave qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a supplemental term of ninety years. The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 better control over the value of your North Cave leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
18 months ago Alex, came seriously close to the eighty-year mark with the lease on his one bedroom flat in North Cave. Having purchased his property two decades ago, the length of the lease was of no bearing. Luckily, he recognised he would imminently be paying an escalated premium for a lease extension. Alex extended the lease just ahead of time in May. Alex and the freeholder subsequently settled on a premium of £6,000 . If he failed to meet the deadline, the sum would have gone up by at least £875.
In 2009 we were called by Mr and Mrs. D François who, having completed a studio apartment in North Cave in January 2004. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Similar homes in North Cave with an extended lease were valued about £280,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease elapsed on 6 June 2102. Having 77 years left we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus fees.
In 2014 we were e-mailed by Dr Hugo Bernard who, having took over the lease of a first floor flat in North Cave in January 2000. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Similar homes in North Cave with an extended lease were worth £183,600. The average ground rent payable was £65 invoiced every twelve months. The lease concluded on 16 November 2082. Given that there were 57 years left we calculated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 plus costs.