The re-sale value of a leasehold property in Retford depends on how many years the lease has left to run. If it is close to or fewer than 80 years you should expect difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is ideal to start the lease extension process when a lease still has 82 years remaining so that formalities can be addressed prior to the 80 year cut off point. Current legislation enables Retford qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has fifty years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a landlord in Retford,the lease extension lawyers 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.
In 2014 Nathaniel, came precariously close to the 80-year mark with the lease on his two bedroom flat in Retford. Having bought his home twenty years previously, the length of the lease was of no concern. by good luck, he realised he would soon be paying an inflated amount for Extending the lease. Nathaniel arranged for a lease extension just under the wire in May. Nathaniel and the landlord who owned the flat above in the end settled on sum of £6,000 . If he had missed the deadline, the premium would have escalated by at least £1,100.
In 2013 we were contacted by Ms T Johnson who, having moved into a recently refurbished apartment in Retford in February 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Similar residencies in Retford with 100 year plus lease were valued around £174,200. The mid-range ground rent payable was £55 billed yearly. The lease expired in 2077. Taking into account 51 years outstanding we calculated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 not including legals.
In 2013 we were phoned by Mr and Mrs. H Patel who, having acquired a ground floor apartment in Retford in March 1996. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Similar properties in Retford with a long lease were in the region of £285,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease came to a finish in 2097. Taking into account 71 years unexpired we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including costs.