On the balance of probabilities where you own a flat in Iver you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Iver can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in this area.
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 Iver lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Luca, came very near to the 80-year mark with the lease on his one bedroom flat in Iver. Having bought his home two decades ago, the lease term was of minimal significance. Fortunately, it dawned on him that he needed to take steps soon on a lease extension. Luca was able to extend his lease at the eleventh hour in March. Luca and the freeholder via the managing agents eventually agreed on a premium of £6,000 . If the lease had slipped to less than 80 years, the sum would have gone up by at least £1,025.
In 2012 we were called by Mr and Mrs. A Nguyen who, having purchased a recently refurbished flat in Iver in September 2010. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Similar residencies in Iver with a long lease were worth £285,000. The mid-range amount of ground rent was £55 collected yearly. The lease concluded in 2106. Considering the 80 years unexpired we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including costs.
An example of a Freehold Enfranchisement matter before the tribunal for a Iver residence 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 was in relation to 2 flats. The number of years remaining on the existing lease(s) was 69 years.