Riding Mill residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a set term.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| 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 |
| 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 Riding Mill,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Riding Mill valuers.
Last Winter Liam, came perilously near to the eighty-year mark with the lease on his basement flat in Riding Mill. Having bought his home 18 years previously, the lease term was of minimal relevance. by good luck, he recognised he needed to take action soon on a lease extension. Liam arranged for a lease extension at the eleventh hour in August. Liam and the landlord subsequently settled on a premium of £5,500 . If the lease had dipped below 80 years, the sum would have gone up by a minimum £1,125.
Last Winter we were e-mailed by Dr T Watson , who moved into a basement flat in Riding Mill in June 1995. We are asked if we could approximate the price could be for a 90 year lease extension. Similar premises in Riding Mill with a long lease were valued around £242,600. The mid-range amount of ground rent was £45 billed yearly. The lease expired in 2093. Taking into account 67 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 exclusive of expenses.
Mr and Mrs. Y King owned a purpose-built apartment in Riding Mill in August 1999. The question was if we could approximate the price could be to extend the lease by ninety years. Comparable flats in Riding Mill with a long lease were valued about £280,000. The mid-range ground rent payable was £55 invoiced per annum. The lease expired in 2104. Taking into account 78 years outstanding we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus expenses.