The market value of Uxbridge 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 significantly once the unexpired lease term is less than 80 years
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence will be equivalent in value to 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. |
| Coventry Building Society | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Using our service gives you increased control over the value of your Uxbridge leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Isaac owned a studio apartment in Uxbridge being sold with a lease of a little over 59 years unexpired. Isaac on an informal basis contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Isaac to invoke his statutory right. Isaac procured expert advice and secured an acceptable deal without going to tribunal and sell the property.
In 2009 we were e-mailed by Mr Eliot Dupont who, having bought a garden flat in Uxbridge in March 2004. The dilemma was if we could estimate the premium would be to extend the lease by 90 years. Identical homes in Uxbridge with an extended lease were valued around £260,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease expiry date was in 2098. Given that there were 72 years left we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.
An example of a Freehold Enfranchisement decision for a Uxbridge flat is 164 Nestles Avenue in October 2013. The tribunal agreed with the proposed price of £20,158 for the freehold and determined that that sum is the amount to be paid into court This case related to 2 flats. The unexpired term as at the valuation date was 69 years.