The market value of Upney leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase substantially once the unexpired lease term is less than eighty years
Leasehold residencies in Upney with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Upney,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 in-depth market knowledge and the close ties they enjoy with Upney valuers.
14 months ago Benjamin, came very close to the 80-year mark with the lease on his one bedroom apartment in Upney. In buying his home 19 years ago, the lease term was of little importance. Fortunately, he realised he needed to take steps soon on a lease extension. Benjamin was able to extend his lease just under the wire in May. Benjamin and the freeholder ultimately agreed on a premium of £6,000 . If the lease had slipped below 80 years, the figure would have escalated by at least £1,100.
In 2010 we were called by Mr and Mrs. C Lefebvre who, having completed a one bedroom apartment in Upney in March 1996. The question was if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Identical residencies in Upney with 100 year plus lease were valued around £205,000. The mid-range ground rent payable was £50 billed annually. The lease ended on 16 September 2104. Taking into account 79 years unexpired we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including professional charges.
An example of a Lease Extension case for a Upney residence is 49 Aldborough Road South in July 2012. The Tribunal decided that the premium payable for the grant of the new lease was £13,925 This case affected 1 flat. The unexpired term was 61.36 years.