Chances are that if you own a flat in Biggleswade you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with undertake Biggleswade lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Trailing unsuccessful discussions with the landlord of her ground floor apartment in Biggleswade, Kate started the lease extension process just as her lease was approaching the all-important eighty-year threshold. The legal work was concluded in September 2006. The landlord’s charges were restricted to about five hundred GBP.
Ms W Norbert moved into a studio flat in Biggleswade in March 1999. We are asked if we could approximate the premium would be to prolong the lease by 90 years. Comparable premises in Biggleswade with 100 year plus lease were in the region of £173,800. The average ground rent payable was £65 invoiced annually. The lease elapsed on 27 July 2079. Having 55 years outstanding we calculated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 plus legals.
Last Summer we were e-mailed by Dr Harry Simon , who owned a garden flat in Biggleswade in May 1997. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Similar premises in Biggleswade with an extended lease were in the region of £235,200. The mid-range ground rent payable was £45 billed every twelve months. The lease ran out on 2 January 2090. Taking into account 66 years remaining we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of fees.