Chances are that if you own a flat in Downe you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Downe,the lease extension solicitors 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 Downe valuers.
Half a year ago Charlie, came precariously close to the eighty-year mark with the lease on his purpose- built flat in Downe. Having purchased his flat 19 years previously, the length of the lease was of minimal interest. Thankfully, it dawned on him that he needed to take action soon on Extending the lease. Charlie extended the lease at the eleventh hour last April. Charlie and the freeholder via the managing agents subsequently settled on an amount of £5,000 . If the lease had slid lower than 80 years, the premium would have escalated by at least £1,125.
Mr and Mrs. F Gray moved into a first floor apartment in Downe in November 2010. We are asked if we could estimate the price would be for a ninety year lease extension. Comparative homes in Downe with an extended lease were in the region of £205,000. The mid-range amount of ground rent was £50 collected per annum. The lease ran out on 9 September 2105. Having 79 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of legals.
An example of a Lease Extension case for a Downe flat is 1 Southlands Court Southlands Road in September 2013. The Leasehold Valuation Tribunal determined that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 was £30,541 This case affected 1 flat. The remaining number of years on the lease was 50.57 years.