Uttoxeter residential property owned on a long lease is a depreciating asset as the leaseholder merely owns the property for a period of years.
It is generally accepted that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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 better control over the value of your Uttoxeter leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Jackson owned a 2 bedroom apartment in Uttoxeter being sold with a lease of a little over 59 years outstanding. Jackson informally spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jackson to exercise his statutory right. Jackson obtained expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
In 2013 we were phoned by Mr and Mrs. L Rivera who, having completed a garden apartment in Uttoxeter in March 1999. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Similar residencies in Uttoxeter with a long lease were valued about £225,400. The average amount of ground rent was £45 invoiced every twelve months. The lease lapsed in 2089. Taking into account 64 years left we approximated the compensation to the freeholder for the lease extension to be between £16,200 and £18,600 plus legals.
Last Spring we were contacted by Mr and Mrs. S Norbert , who acquired a purpose-built flat in Uttoxeter in July 2003. The dilemma was if we could estimate the premium could be to prolong the lease by a further 90 years. Identical premises in Uttoxeter with a long lease were in the region of £270,000. The mid-range ground rent payable was £55 invoiced per annum. The lease termination date was in 2100. Given that there were 75 years unexpired we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.