For those whose Iver flat is held on a long lease, the message is clear – if you ignore the situation, the property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to extend the lease.
Leasehold residencies in Iver with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Engaging our service gives you better control over the value of your Iver leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last year Rory, started to get near to the 80-year threshold with the lease on his one bedroom flat in Iver. Having bought his home 18 years ago, the length of the lease was of no significance. Thankfully, he noticed he needed to take action soon on a lease extension. Rory extended the lease just under the wire last June. Rory and the landlord eventually agreed on a premium of £5,000 . If the lease had dipped lower than 80 years, the price would have escalated by a minimum £1,125.
In 2013 we were contacted by Mr and Mrs. K Moore who, having bought a recently refurbished flat in Iver in November 2001. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar flats in Iver with an extended lease were in the region of £256,600. The average ground rent payable was £60 billed quarterly. The lease finished on 15 August 2078. Having 52 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £41,800 and £48,400 exclusive of legals.
An example of a Freehold Enfranchisement matter before the tribunal for a Iver premises 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 affected 2 flats. The unexpired residue of the current lease was 69 years.