Sturminster Newton 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 generally considered that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 will provide you enhanced control over the value of your Sturminster Newton leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Ali, came dangerously close to the eighty-year mark with the lease on his garden flat in Sturminster Newton. In buying his property two decades ago, the lease term was of no significance. Thankfully, he noticed he would imminently be paying an inflated amount for Extending the lease. Ali arranged for a lease extension just under the wire last August. Ali and the freeholder via the managing agents in the end agreed on the final figure of £5,500 . If the lease had dipped below eighty years, the sum would have increased by at least £875.
In 2013 we were phoned by Ms I Davis who, having bought a garden apartment in Sturminster Newton in October 2009. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Comparable flats in Sturminster Newton with a long lease were valued around £300,000. The average amount of ground rent was £50 collected monthly. The lease ran out in 2100. Considering the 75 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including professional charges.
Last month we were called by Ms Jessica Gómez , who owned a ground floor flat in Sturminster Newton in September 2004. We are asked if we could shed any light on how much (approximately) price could be for a 90 year extension to my lease. Comparative residencies in Sturminster Newton with an extended lease were worth £250,400. The mid-range ground rent payable was £65 collected yearly. The lease finished in 2089. Having 64 years unexpired we calculated the premium to the landlord for the lease extension to be between £19,000 and £22,000 not including fees.