Sewardstonebury residential property owned on a long lease is a depreciating asset because a leaseholder merely owns the property for a period of 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 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you better control over the value of your Sewardstonebury leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Lucas owned a studio apartment in Sewardstonebury being sold with a lease of just over fifty eight years remaining. Lucas informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Lucas to invoke his statutory right. Lucas procured expert advice and secured satisfactory resolution informally and ending up with a market value flat.
In 2013 we were e-mailed by Mr and Mrs. B Flores who, having moved into a basement flat in Sewardstonebury in November 2009. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Similar flats in Sewardstonebury with 100 year plus lease were valued around £261,600. The mid-range ground rent payable was £60 collected annually. The lease finished in 2078. Having 52 years as a residual term we estimated the premium to the landlord for the lease extension to be within £39,000 and £45,000 plus legals.
In 2013 we were approached by Dr B Díaz who, having purchased a recently refurbished apartment in Sewardstonebury in August 2009. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Identical premises in Sewardstonebury with an extended lease were valued around £218,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease ended in 2089. Considering the 63 years left we approximated the premium to the landlord to extend the lease to be within £17,100 and £19,800 plus professional charges.