The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Retford may extend the lease for an additional 90 years under legislation. Do give careful consideration before delaying your Retford lease extension. Postponing that expense today simply increases the price you will ultimately have to pay for a lease extension.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 landlord in Retford,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 experience and the close ties they enjoy with Retford valuers.
Aiden owned a studio apartment in Retford on the market with a lease of fraction over sixty years unexpired. Aiden on an informal basis spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Aiden to exercise his statutory right. Aiden procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.
Last July we were e-mailed by Mr and Mrs. E Davis , who purchased a one bedroom apartment in Retford in November 2012. We are asked if we could approximate the premium could be for a 90 year lease extension. Identical premises in Retford with an extended lease were in the region of £210,000. The average amount of ground rent was £50 invoiced yearly. The lease terminated on 13 March 2105. Taking into account 80 years left we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including expenses.
In 2014 we were phoned by Mrs E François who, having took over the lease of a purpose-built apartment in Retford in January 2001. The question was if we could approximate the price would likely be to prolong the lease by an additional years. Similar homes in Retford with an extended lease were valued around £275,000. The mid-range ground rent payable was £45 billed per annum. The lease ended on 14 June 2094. Taking into account 69 years unexpired we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus legals.