The value of West Haddon leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the remaining term is less than eighty years
It is generally considered that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 West Haddon leasehold, as your property will be more valuable and saleable in respect of lease length should you want 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.
Ali was the the leasehold proprietor of a conversion flat in West Haddon on the market with a lease of fraction over 61 years left. Ali informally spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Ali to invoke his statutory right. Ali procured expert advice and secured satisfactory resolution without going to tribunal and sell the flat.
Last Summer we were phoned by Ms L Johnson , who completed a one bedroom flat in West Haddon in November 2005. The question was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Similar residencies in West Haddon with a long lease were worth £191,400. The average amount of ground rent was £55 invoiced monthly. The lease terminated in 2079. Considering the 54 years remaining we approximated the compensation to the landlord for the lease extension to be within £34,200 and £39,600 plus expenses.
In 2014 we were phoned by Mr Liam Ricardo who, having took over the lease of a basement flat in West Haddon in February 2004. The question was if we could approximate the premium could be to prolong the lease by 90 years. Comparative residencies in West Haddon with an extended lease were valued around £295,000. The average amount of ground rent was £45 invoiced per annum. The lease concluded in 2099. Having 74 years left we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including expenses.