The value of Stourport On Severn leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate significantly once the unexpired lease term is less than eighty years
It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Stourport On Severn lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Jack was the the leasehold owner of a conversion flat in Stourport On Severn being sold with a lease of just over 72 years outstanding. Jack on an informal basis approached his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 per annum. No ground rent would be payable on a lease extension were Jack to invoke his statutory right. Jack procured expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
Dr Rory Morel moved into a purpose-built apartment in Stourport On Severn in August 1996. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar flats in Stourport On Severn with 100 year plus lease were worth £215,600. The average ground rent payable was £45 collected per annum. The lease finished on 11 May 2088. Taking into account 62 years unexpired we estimated the premium to the landlord for the lease extension to be within £18,100 and £20,800 exclusive of expenses.
In 2011 we were phoned by Mr and Mrs. C Ricardo who, having bought a one bedroom apartment in Stourport On Severn in January 1995. The question was if we could approximate the premium would be for a ninety year lease extension. Comparable flats in Stourport On Severn with a long lease were valued around £265,000. The average ground rent payable was £50 billed annually. The lease came to a finish in 2099. Given that there were 73 years left we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.