The value of Goole 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 unexpired lease term is below than eighty years
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Goole,the lease extension experts 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 Goole valuers.
Teddy was the the leasehold owner of a studio apartment in Goole being marketed with a lease of a little over 61 years remaining. Teddy on an informal basis contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Teddy to exercise his statutory right. Teddy obtained expert advice and secured an acceptable resolution informally and sell the flat.
Last Summer we were phoned by Mr F Morel , who completed a studio flat in Goole in April 2008. The question was if we could estimate the premium could be to prolong the lease by an additional years. Identical residencies in Goole with an extended lease were valued around £173,800. The average ground rent payable was £60 billed annually. The lease finished on 14 May 2080. Taking into account 55 years left we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of legals.
In 2011 we were approached by Mr and Mrs. A Anderson who, having purchased a recently refurbished apartment in Goole in March 1999. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical residencies in Goole with 100 year plus lease were valued about £235,200. The average amount of ground rent was £45 billed annually. The lease terminated in 2091. Given that there were 66 years unexpired we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of costs.