Stourport On Severn leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Stourport On Severn residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Stourport On Severn you would be well advised to investigate if your lease has between seventy and 90 years left. There are good reasons why a Stourport On Severn leaseholder with a lease having around 80 years remaining should take action to make sure that a lease extension is effected without delay
It is conventional wisdom that a property with more than one hundred years unexpired lease term 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 |
|---|---|
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Stourport On Severn,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Stourport On Severn valuers.
Last year Caleb, started to get near to the 80-year mark with the lease on his one bedroom apartment in Stourport On Severn. Having bought his property two decades ago, the lease term was of minimal concern. by good luck, he noticed he needed to take action soon on a lease extension. Caleb arranged for a lease extension just under the wire last May. Caleb and the freeholder via the managing agents subsequently settled on sum of £6,000 . If the lease had dropped lower than eighty years, the figure would have increased by at least £850.
In 2012 we were e-mailed by Mr and Mrs. A Scott who, having bought a one bedroom flat in Stourport On Severn in November 2008. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical flats in Stourport On Severn with an extended lease were worth £227,800. The mid-range ground rent payable was £45 collected quarterly. The lease lapsed in 2090. Taking into account 65 years as a residual term we estimated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including legals.
Last Winter we were phoned by Dr Caleb Roux , who was assigned a lease of a basement apartment in Stourport On Severn in April 2008. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Similar premises in Stourport On Severn with an extended lease were in the region of £270,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease ended on 1 February 2101. Taking into account 76 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.