Addiscombe residential property owned on a long lease is a depreciating asset as the leaseholder only owns the property for a set term.
Leasehold premises in Addiscombe with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Addiscombe can be a difficult process. We recommend you procure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Addiscombe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted correspondence with the freeholder of her two bedroom flat in Addiscombe, Elizabeth commenced the lease extension process as the eighty year threshold was swiftly coming. The lease extension was concluded in October 2008. The freeholder’s fees were restricted to a tad over 450 GBP.
Last Autumn we were contacted by Mr and Mrs. B Khan , who acquired a purpose-built apartment in Addiscombe in November 2008. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Identical premises in Addiscombe with a long lease were worth £193,400. The average amount of ground rent was £65 billed yearly. The lease terminated in 2084. Taking into account 59 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 not including professional charges.
An example of a Freehold Enfranchisement decision for a Addiscombe flat is 29 Woodstock Road in April 2014. the Tribunal determined that the premiums to be paid into court in respect of the purchase of the freehold registered at HMLR under Title N0.SY3997 should be £7,217. This case related to 4 flats. The number of years remaining on the existing lease(s) was 98 years.