The market value of Biddenham 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 unexpired lease term is less than eighty years
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Biddenham,the lease extension experts 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 Biddenham valuers.
Trailing lengthy discussions with the landlord of her one bedroom flat in Biddenham, Chloe initiated the lease extension process just as the lease was approaching the crucial 80-year deadline. The legal work completed in October 2006. The landlord’s fees were restricted to slightly above 500 pounds.
In 2012 we were called by Dr Daisy Miller who, having was assigned a lease of a purpose-built apartment in Biddenham in June 2003. The question was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Similar properties in Biddenham with 100 year plus lease were valued about £242,600. The average amount of ground rent was £45 billed monthly. The lease elapsed in 2092. Given that there were 67 years remaining we approximated the premium to the landlord for the lease extension to be within £11,400 and £13,200 plus costs.
In 2009 we were contacted by Mr and Mrs. H Lefèvre who, having completed a first floor apartment in Biddenham in April 2005. The question was if we could estimate the premium would be for a 90 year lease extension. Similar flats in Biddenham with a long lease were worth £280,000. The average amount of ground rent was £55 billed per annum. The lease ended on 18 April 2103. Taking into account 78 years left we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including professional charges.