The value of Wootton Bridge 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 escalate materialy once the remaining term is less than eighty years
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Wootton Bridge,the lease extension solicitors 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 Wootton Bridge valuers.
Last Winter Daniel, started to get close to the 80-year mark with the lease on his one bedroom apartment in Wootton Bridge. In buying his flat two decades ago, the length of the lease was of little importance. Luckily, he realised he needed to take action soon on Extending the lease. Daniel was able to extend his lease just ahead of time in May. Daniel and the freeholder via the management company ultimately agreed on a premium of £6,000 . If the lease had dropped below eighty years, the figure would have increased by a minimum £1,050.
Last year we were phoned by Mr and Mrs. G Reed , who owned a ground floor apartment in Wootton Bridge in September 2007. The question was if we could estimate the price would likely be to prolong the lease by ninety years. Identical residencies in Wootton Bridge with an extended lease were in the region of £183,600. The mid-range ground rent payable was £65 billed yearly. The lease concluded on 1 September 2083. Having 57 years as a residual term we estimated the premium to the landlord for the lease extension to be between £28,500 and £33,000 not including fees.
Last Autumn we were called by Mr and Mrs. O Mitchell , who completed a studio apartment in Wootton Bridge in February 2006. The dilemma was if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Identical premises in Wootton Bridge with an extended lease were valued about £245,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease termination date was in 2094. Taking into account 68 years outstanding we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.