Chances are that if you own a flat in Redland you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you increased control over the value of your Redland leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Oliver owned a studio apartment in Redland being marketed with a lease of a few days over fifty eight years unexpired. Oliver informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Oliver to invoke his statutory right. Oliver obtained expert advice and secured satisfactory deal without resorting to tribunal and readily saleable.
Dr Milo Bertrand completed a one bedroom flat in Redland in October 1997. We are asked if we could estimate the price would be for a ninety year lease extension. Comparable residencies in Redland with an extended lease were worth £255,000. The mid-range ground rent payable was £50 billed annually. The lease expired on 6 August 2095. Taking into account 71 years remaining we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.
Mr Jack Davis was assigned a lease of a basement apartment in Redland in November 1998. We are asked if we could estimate the premium would be to extend the lease by a further 90 years. Similar flats in Redland with a long lease were valued about £254,200. The average amount of ground rent was £60 billed quarterly. The lease terminated in 2075. Having 51 years left we calculated the compensation to the freeholder for the lease extension to be between £43,700 and £50,600 not including legals.