The market value of Nunthorpe 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 below than 80 years
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Nunthorpe,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Nunthorpe valuers.
In recent months Daniel, came dangerously close to the eighty-year threshold with the lease on his ground floor flat in Nunthorpe. In buying his property 18 years previously, the length of the lease was of little relevance. As luck would have it, he became aware that he needed to take steps soon on Extending the lease. Daniel was able to extend his lease at the eleventh hour in July. Daniel and the landlord who owned the flat above in the end settled on the final figure of £5,500 . If he failed to meet the deadline, the premium would have gone up by a minimum £1,150.
Last Summer we were contacted by Mr and Mrs. L Scott , who purchased a basement apartment in Nunthorpe in February 2005. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparative homes in Nunthorpe with an extended lease were valued about £223,400. The average amount of ground rent was £60 billed quarterly. The lease elapsed on 24 August 2084. Considering the 59 years outstanding we estimated the compensation to the landlord for the lease extension to be within £27,600 and £31,800 plus costs.
Last Spring we were called by Mrs H Taylor , who was assigned a lease of a garden flat in Nunthorpe in May 1997. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparative residencies in Nunthorpe with an extended lease were valued around £205,000. The average ground rent payable was £50 collected every twelve months. The lease elapsed in 2104. Having 79 years unexpired we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus legals.