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 expense of extending the lease can increase significantly once the unexpired lease term is less than 80 years
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Santander | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a freeholder in Undy,the lease extension lawyers 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 Undy valuers.
During the course of the last few months Jonathan, started to get near to the 80-year threshold with the lease on his basement apartment in Undy. Having bought his property twenty years previously, the unexpired term was of minimal concern. Thankfully, he realised he needed to take steps soon on a lease extension. Jonathan arranged for a lease extension at the eleventh hour last January. Jonathan and the freeholder via the management company subsequently agreed on the final figure of £5,500 . If the lease had slid below eighty years, the premium would have escalated by at least £950.
Last Christmas we were contacted by Dr T Turner , who acquired a ground floor flat in Undy in February 2000. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative residencies in Undy with a long lease were valued about £275,000. The mid-range amount of ground rent was £55 billed quarterly. The lease end date was in 2102. Given that there were 76 years outstanding we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.
In 2013 we were approached by Dr Omar Lee who, having was assigned a lease of a recently refurbished apartment in Undy in October 2003. We are asked if we could approximate the premium would likely be to prolong the lease by ninety years. Comparative flats in Undy with 100 year plus lease were in the region of £176,200. The mid-range ground rent payable was £65 billed every twelve months. The lease terminated on 11 June 2082. Given that there were 56 years left we calculated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 plus fees.