Chances are that where you own a flat in St Margarets you actually own a long leasehold interest over your property
Leasehold properties in St Margarets with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
Retaining our service gives you better control over the value of your St Margarets leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Rory, came seriously close to the eighty-year mark with the lease on his two bedroom apartment in St Margarets. Having bought his flat twenty years previously, the length of the lease was of no concern. Luckily, he noticed he would imminently be paying an inflated amount for Extending the lease. Rory was able to extend his lease just ahead of time in August. Rory and the freeholder subsequently settled on the final figure of £6,000 . If the lease had dipped to less than eighty years, the sum would have escalated by a minimum £1,050.
Last Autumn we were phoned by Ms Morgan Fournier , who purchased a garden apartment in St Margarets in March 2001. The question was if we could approximate the price would be for a ninety year extension to my lease. Comparable flats in St Margarets with an extended lease were worth £250,400. The mid-range ground rent payable was £65 collected monthly. The lease came to a finish in 2088. Considering the 64 years unexpired we calculated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 exclusive of expenses.
An example of a Lease Extension matter before the tribunal for a St Margarets flat is Ground Floor Flat 91 Bath Road in May 2009. in a case where the freeholder could not be traced, the Brentford County Court ordered that the Lease be surrendered in return for the grant of a new lease of the Premises at a premium determined by the Leasehold Valuation Tribunal. The tribunal concluded that the price payable by the Applicant for the new lease of the premises be £15,900 This case related to 1 flat. The unexpired term as at the valuation date was 60.45 years.