The market value of West Bridgford leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase substantially once the remaining term is less than 80 years
Leasehold properties in West Bridgford with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with undertake West Bridgford lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Last Summer Sebastian, started to get close to the 80-year threshold with the lease on his studio apartment in West Bridgford. Having bought his home 18 years previously, the unexpired term was of no interest. Luckily, he became aware that he would soon be paying an escalated premium for Extending the lease. Sebastian was able to extend his lease at the eleventh hour in July. Sebastian and the landlord who owned the flat above subsequently settled on sum of £5,500 . If he failed to meet the deadline, the premium would have increased by at least £850.
Last Winter we were e-mailed by Dr B Lefèvre , who was assigned a lease of a basement apartment in West Bridgford in February 2005. We are asked if we could approximate the premium could be to extend the lease by 90 years. Comparative properties in West Bridgford with a long lease were in the region of £168,800. The average ground rent payable was £60 collected yearly. The lease finished in 2081. Given that there were 55 years unexpired we approximated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 not including expenses.
Mr and Mrs. Y Scott completed a one bedroom flat in West Bridgford in January 1996. The dilemma was if we could estimate the price could be for a ninety year lease extension. Comparable residencies in West Bridgford with an extended lease were in the region of £235,200. The mid-range amount of ground rent was £45 billed annually. The lease termination date was in 2092. Considering the 66 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus legals.