The value of Willingham 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 substantially once the remaining term is below than 80 years
Leasehold premises in Willingham with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| Halifax | Minimum 70 years from the date 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. |
Irrespective of whether you are a tenant or a landlord in Willingham,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Willingham valuers.
Last year Connor, started to get near to the 80-year threshold with the lease on his purpose- built apartment in Willingham. In buying his property twenty years ago, the unexpired term was of no importance. by good luck, he noticed he needed to take steps soon on a lease extension. Connor arranged for a lease extension just under the wire in September. Connor and the landlord who owned the flat above eventually agreed on an amount of £5,000 . If the lease had dipped below 80 years, the sum would have increased by a minimum £950.
Last Spring we were approach by Mrs Poppy Martin , who owned a one bedroom apartment in Willingham in May 1998. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Identical homes in Willingham with a long lease were worth £285,000. The mid-range amount of ground rent was £45 billed monthly. The lease expiry date was in 2098. Considering the 72 years outstanding we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of expenses.
Last Winter we were approach by Ms Robyn Taylor , who was assigned a lease of a recently refurbished apartment in Willingham in July 2005. The dilemma was if we could estimate the price could be for a ninety year lease extension. Comparative homes in Willingham with an extended lease were valued around £233,200. The mid-range ground rent payable was £60 invoiced quarterly. The lease termination date was on 23 May 2087. Considering the 61 years unexpired we estimated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 not including professional charges.