Rogiet residential property owned on a long lease is a depreciating asset because a leaseholder merely owns the property for a set term.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | 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. |
Regardless of whether you are a tenant or a freeholder in Rogiet,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Rogiet valuers.
Mason owned a conversion flat in Rogiet being marketed with a lease of fraction over fifty eight years outstanding. Mason informally contacted his freeholder being a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 per annum. No ground rent would be due on a lease extension were Mason to invoke his statutory right. Mason procured expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Last year we were e-mailed by Mr L Anderson , who acquired a studio apartment in Rogiet in April 1997. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Identical flats in Rogiet with a long lease were worth £208,200. The mid-range ground rent payable was £65 billed annually. The lease terminated in 2086. Having 61 years left we estimated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 not including expenses.
In 2013 we were approached by Mr and Mrs. B Martinez who, having purchased a purpose-built flat in Rogiet in May 2005. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Similar flats in Rogiet with an extended lease were valued around £260,000. The average ground rent payable was £50 invoiced every twelve months. The lease elapsed on 10 September 2097. Having 72 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.