Deeside residential property held on a long lease is a depreciating asset because a leaseholder merely owns the property for a set term.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Deeside,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 Deeside valuers.
Lucas was the the leasehold proprietor of a conversion apartment in Deeside being sold with a lease of a few days over 59 years remaining. Lucas informally spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 yearly. No ground rent would be due on a lease extension were Lucas to invoke his statutory right. Lucas obtained expert legal guidance and secured satisfactory deal informally and readily saleable.
Last Winter we were phoned by Mr and Mrs. F Sánchez , who completed a purpose-built apartment in Deeside in November 1999. We are asked if we could approximate the price would be for a ninety year extension to my lease. Identical homes in Deeside with a long lease were valued around £240,600. The mid-range amount of ground rent was £65 billed monthly. The lease elapsed on 26 March 2086. Taking into account 62 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of professional charges.
In 2013 we were phoned by Dr Caitlin Mercier who, having acquired a basement apartment in Deeside in March 1998. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Comparable premises in Deeside with a long lease were in the region of £179,200. The mid-range ground rent payable was £55 collected monthly. The lease terminated in 2075. Considering the 51 years remaining we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of fees.