Greenfield leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Greenfield enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Greenfield you really ought to investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Greenfield with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
Lender | Requirement |
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Bank of Scotland | Minimum 70 years from the date of the mortgage. |
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. |
TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Royal Bank of Scotland | Mortgage term plus 30 years. |
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 freeholder in Greenfield,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 Greenfield valuers.
Eliot was the the leasehold proprietor of a high value apartment in Greenfield on the market with a lease of a few days over fifty eight years left. Eliot on an informal basis approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Eliot to exercise his statutory right. Eliot procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.
In 2009 we were called by Mr and Mrs. C Simon who, having purchased a first floor flat in Greenfield in November 2005. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Similar homes in Greenfield with an extended lease were valued about £264,000. The mid-range amount of ground rent was £60 billed quarterly. The lease finished on 7 July 2077. Given that there were 53 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £37,100 and £42,800 not including legals.
In 2012 we were e-mailed by Mr and Mrs. O Sánchez who, having purchased a studio apartment in Greenfield in March 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparable homes in Greenfield with a long lease were in the region of £225,400. The mid-range ground rent payable was £45 collected per annum. The lease lapsed in 2088. Having 64 years remaining we estimated the premium to the freeholder for the lease extension to be within £16,200 and £18,600 plus fees.