The value of West Dean 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 substantially once the unexpired lease term is below than eighty years
It is generally considered that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| 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 |
| 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. |
Irrespective of whether you are a tenant or a landlord in West Dean,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 West Dean valuers.
Off the back of unsuccessful correspondence with the landlord of her basement apartment in West Dean, Daisy commenced the lease extension process as the eighty year threshold was fast advancing. The legal work completed in March 2008. The freeholder’s costs were restricted to below 700 pounds.
In 2009 we were approached by Mr and Mrs. V Sharif who, having bought a studio flat in West Dean in September 2008. The question was if we could approximate the premium could be to prolong the lease by ninety years. Identical flats in West Dean with a long lease were valued around £166,400. The mid-range amount of ground rent was £60 invoiced annually. The lease ran out on 26 January 2080. Given that there were 54 years left we estimated the premium to the landlord to extend the lease to be between £32,300 and £37,400 not including costs.
Mr and Mrs. J Scott bought a garden apartment in West Dean in October 1996. We are asked if we could estimate the premium could be to extend the lease by ninety years. Comparable homes in West Dean with a long lease were valued around £227,800. The average ground rent payable was £45 collected yearly. The lease expired on 11 March 2091. Given that there were 65 years remaining we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of legals.