The market value of Undy 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 increase significantly once the remaining term is less than eighty years
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| 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. |
Retaining our service will provide you enhanced control over the value of your Undy leasehold, as your property will be more valuable and saleable in terms of lease length should you wish 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.
Subsequent to unsuccessful correspondence with the freeholder of her leasehold apartment in Undy, Natasha started the lease extension process just as the lease was approaching the critical eighty-year mark. The transaction completed in March 2005. The landlord’s charges were kept to an absolute minimum.
In 2013 we were contacted by Mrs Ashleigh Bell who, having bought a first floor apartment in Undy in February 2009. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Comparative residencies in Undy with 100 year plus lease were in the region of £183,600. The mid-range ground rent payable was £65 collected yearly. The lease ended on 11 June 2083. Having 57 years left we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of fees.
Last Winter we were approach by Mr and Mrs. Y Hall , who was assigned a lease of a newly refurbished flat in Undy in January 2001. The dilemma was if we could approximate the premium would be to extend the lease by a further 90 years. Comparative residencies in Undy with a long lease were valued around £245,000. The mid-range ground rent payable was £50 collected quarterly. The lease concluded on 5 March 2094. Given that there were 68 years left we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.