The value of Shotley Bridge leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the remaining term is less than eighty years
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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 |
| 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. |
Engaging our service gives you increased control over the value of your Shotley Bridge leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Tommy was the the leasehold owner of a high value apartment in Shotley Bridge being sold with a lease of fraction over sixty years remaining. Tommy on an informal basis contacted his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Tommy to exercise his statutory right. Tommy obtained expert advice and secured an acceptable resolution without going to tribunal and sell the flat.
Last Autumn we were approach by Mr and Mrs. J James , who acquired a ground floor flat in Shotley Bridge in January 2000. The dilemma was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar residencies in Shotley Bridge with 100 year plus lease were worth £176,200. The mid-range amount of ground rent was £65 billed every twelve months. The lease concluded in 2081. Given that there were 56 years remaining we calculated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 plus professional charges.
In 2009 we were contacted by Mr D Martin who, having bought a basement apartment in Shotley Bridge in October 1997. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Similar residencies in Shotley Bridge with 100 year plus lease were worth £237,600. The mid-range amount of ground rent was £45 invoiced quarterly. The lease ran out on 7 February 2092. Given that there were 67 years unexpired we estimated the premium to the landlord to extend the lease to be within £11,400 and £13,200 plus costs.