The market value of Dalton in Furness 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 unexpired lease term is below than 80 years
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| 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 Dalton in Furness,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 in-depth market knowledge and the close ties they enjoy with Dalton in Furness valuers.
Kian was the the leasehold owner of a studio apartment in Dalton in Furness being marketed with a lease of fraction over 72 years left. Kian on an informal basis contacted his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Kian to invoke his statutory right. Kian procured expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
In 2010 we were e-mailed by Mr and Mrs. T Dupont who, having purchased a one bedroom flat in Dalton in Furness in October 2008. The question was if we could estimate the price could be for a 90 year lease extension. Comparable premises in Dalton in Furness with an extended lease were worth £275,000. The mid-range amount of ground rent was £65 billed every twelve months. The lease expired on 16 November 2093. Considering the 68 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of legals.
In 2013 we were contacted by Mr and Mrs. Y Evans who, having acquired a one bedroom apartment in Dalton in Furness in June 2005. We are asked if we could approximate the premium could be to extend the lease by a further 90 years. Similar flats in Dalton in Furness with a long lease were worth £208,600. The average ground rent payable was £60 billed yearly. The lease terminated in 2082. Having 57 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 not including legals.