Iver residential property owned on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.
Leasehold premises in Iver with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Iver,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Iver valuers.
Following lengthy discussions with the landlord of her studio flat in Iver, Isabelle initiated the lease extension process as the 80 year threshold was quickly coming. The legal work was concluded in July 2009. The freeholder’s charges were kept to an absolute minimum.
Last May we were contacted by Mr Edward Parker , who took over the lease of a first floor flat in Iver in August 2009. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Identical homes in Iver with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease expired on 13 September 2105. Taking into account 79 years remaining we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.
An example of a Freehold Enfranchisement matter before the tribunal for a Iver property is 164 Nestles Avenue in October 2013. The tribunal agreed with the proposed price of £20,158 for the freehold and determined that that sum is the amount to be paid into court This case related to 2 flats. The remaining number of years on the lease was 69 years.