The value of Wide Open 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 escalate significantly once the unexpired lease term is less than eighty years
It is generally accepted that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| 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. |
| 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. |
Lease extensions in Wide Open can be a difficult process. We recommend you get professional help from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Wide Open lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful correspondence with the landlord of her purpose-built flat in Wide Open, Aimee commenced the lease extension process as the 80 year mark was rapidly coming. The legal work completed in October 2015. The freeholder’s costs were kept to an absolute minimum.
Last Autumn we were phoned by Mrs Alisha Norbert , who purchased a studio flat in Wide Open in January 2009. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparable residencies in Wide Open with an extended lease were in the region of £250,000. The average amount of ground rent was £50 invoiced every twelve months. The lease ran out in 2094. Considering the 69 years unexpired we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.
Last year we were approach by Dr I Kelly , who bought a one bedroom flat in Wide Open in February 2010. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative residencies in Wide Open with a long lease were in the region of £290,000. The average amount of ground rent was £60 invoiced monthly. The lease ended in 2105. Considering the 80 years as a residual term we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus expenses.