The value of Hengoed leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase significantly once the remaining term is below than eighty years
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Bank of Scotland | 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. |
| 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. |
Engaging our service gives you better control over the value of your Hengoed leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of lengthy discussions with the freeholder of her one bedroom flat in Hengoed, Alisha initiated the lease extension process just as her lease was nearing the critical eighty-year threshold. The transaction was finalised in October 2010. The freeholder’s fees were negotiated to a tad over five hundred pounds.
Mr and Mrs. B Smith bought a ground floor flat in Hengoed in February 2000. We are asked if we could estimate the premium would be to prolong the lease by a further 90 years. Identical residencies in Hengoed with a long lease were valued about £176,200. The mid-range amount of ground rent was £65 invoiced per annum. The lease expired on 14 November 2081. Taking into account 56 years left we estimated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 not including professional charges.
Last Summer we were e-mailed by Ms Isabelle Lefèvre , who completed a first floor apartment in Hengoed in November 2002. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical residencies in Hengoed with 100 year plus lease were worth £242,600. The mid-range ground rent payable was £45 collected monthly. The lease elapsed on 12 September 2092. Taking into account 67 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 not including expenses.