Unfortunately that a Oldland residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Oldland property prices.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be due. Most leasehold owners in Oldland will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the formalities.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Oldland,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Oldland valuers.
Jason owned a high value apartment in Oldland being sold with a lease of a little over 72 years left. Jason on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 yearly. No ground rent would be payable on a lease extension were Jason to invoke his statutory right. Jason obtained expert advice and secured an acceptable deal informally and readily saleable.
Last year we were called by Mr and Mrs. K Harris , who was assigned a lease of a studio apartment in Oldland in September 2001. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by an additional years. Comparative residencies in Oldland with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £45 billed quarterly. The lease expiry date was on 22 July 2095. Given that there were 69 years left we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of fees.
Last Spring we were e-mailed by Mr George Green , who completed a studio apartment in Oldland in May 1998. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar homes in Oldland with an extended lease were worth £216,000. The mid-range ground rent payable was £60 invoiced monthly. The lease ran out in 2084. Considering the 58 years remaining we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of fees.