The value of Openshaw 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 below than 80 years
Leasehold premises in Openshaw with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Openshaw can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Openshaw lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jamie was the the leasehold owner of a high value apartment in Openshaw being marketed with a lease of a little over fifty eight years remaining. Jamie on an informal basis spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jamie to invoke his statutory right. Jamie obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
Last Autumn we were contacted by Ms Alice Ward , who owned a purpose-built apartment in Openshaw in February 2008. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Comparative flats in Openshaw with 100 year plus lease were valued about £216,000. The average amount of ground rent was £60 billed every twelve months. The lease termination date was in 2083. Having 58 years unexpired we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 plus costs.
In 2011 we were contacted by Dr Alex Young who, having completed a one bedroom apartment in Openshaw in May 1998. The question was if we could estimate the premium would be to prolong the lease by ninety years. Comparative premises in Openshaw with an extended lease were valued about £205,000. The average ground rent payable was £50 collected yearly. The lease concluded on 8 April 2103. Having 78 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus expenses.