The value of Speke leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase significantly once the unexpired lease term is less than 80 years
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Speke,the lease extension solicitors 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 Speke valuers.
Subsequent to unsuccessful discussions with the freeholder of her garden flat in Speke, Francesca started the lease extension process just as her lease was nearing the critical eighty-year threshold. The lease extension completed in February 2015. The landlord’s charges were negotiated to below five hundred pounds.
Last Autumn we were phoned by Mrs Naomi Carter , who was assigned a lease of a basement apartment in Speke in August 2007. The question was if we could estimate the price could be to prolong the lease by a further 90 years. Comparable flats in Speke with a long lease were worth £264,000. The mid-range amount of ground rent was £60 billed monthly. The lease came to a finish in 2079. Given that there were 53 years remaining we estimated the premium to the landlord for the lease extension to be between £37,100 and £42,800 plus fees.
In 2010 we were e-mailed by Dr Tyler López who, having took over the lease of a ground floor flat in Speke in October 2000. The question was if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Comparative flats in Speke with 100 year plus lease were in the region of £225,400. The mid-range ground rent payable was £45 collected yearly. The lease concluded in 2090. Considering the 64 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £15,200 and £17,600 not including professional charges.