The market value of Quinton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate materialy once the remaining term is less than 80 years
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
Irrespective of whether you are a tenant or a freeholder in Quinton,the lease extension solicitors 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 Quinton valuers.
Trailing lengthy negotiations with the freeholder of her studio apartment in Quinton, Bethany initiated the lease extension process as the 80 year mark was fast coming. The legal work completed in November 2010. The landlord’s fees were restricted to approximately four hundred pounds.
Last Summer we were e-mailed by Mr and Mrs. B Thompson , who bought a purpose-built flat in Quinton in May 2005. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Comparable properties in Quinton with 100 year plus lease were worth £210,000. The average ground rent payable was £50 invoiced every twelve months. The lease elapsed on 9 March 2106. Taking into account 80 years left we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of expenses.
Last Winter we were phoned by Mr W Thompson , who purchased a basement flat in Quinton in April 1996. The question was if we could approximate the premium would be for a 90 year extension to my lease. Similar premises in Quinton with 100 year plus lease were worth £275,000. The average amount of ground rent was £45 invoiced yearly. The lease ran out on 1 January 2095. Given that there were 69 years outstanding we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of costs.