Totterdown residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a period of years.
Leasehold premises in Totterdown with over 100 years remaining 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 to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| 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 will provide you enhanced control over the value of your Totterdown leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 9 months of protracted discussions with the landlord of her ground floor flat in Totterdown, Natalie commenced the lease extension process as the eighty year threshold was quickly nearing. The lease extension was finalised in February 2012. The freeholder’s charges were kept to an absolute minimum.
In 2012 we were approached by Mr Nathaniel Patel who, having was assigned a lease of a one bedroom apartment in Totterdown in February 2006. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Similar premises in Totterdown with a long lease were in the region of £255,000. The average ground rent payable was £50 billed yearly. The lease ended on 10 June 2096. Having 71 years outstanding we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.
Last year we were e-mailed by Mr Lewis Moore , who purchased a studio flat in Totterdown in October 1999. The dilemma was if we could estimate the premium would be to extend the lease by a further 90 years. Comparable residencies in Totterdown with a long lease were valued about £254,200. The mid-range amount of ground rent was £60 collected quarterly. The lease terminated on 21 November 2076. Given that there were 51 years unexpired we estimated the premium to the freeholder to extend the lease to be within £43,700 and £50,600 not including professional charges.