On the balance of probabilities where you own a flat in Tower Hill you actually own a long leasehold interest over your property
Leasehold properties in Tower Hill with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Tower Hill lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Off the back of lengthy discussions with the freeholder of her first floor apartment in Tower Hill, Katie initiated the lease extension process as the 80 year deadline was quickly nearing. The transaction completed in October 2012. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. B Sharif moved into a basement apartment in Tower Hill in March 2001. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Identical residencies in Tower Hill with a long lease were worth £260,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease ran out in 2097. Having 72 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.
An example of a Freehold Enfranchisement decision for a Tower Hill flat is 1-41 Royal Tower Lodge 40 Cartwright Street in April 2013. the tribunal adding the agreed value of capitalised ground rents and the reversion the price to be paid for the freehold was £1,187,000 This case related to 41 flats. The remaining number of years on the lease was 107 years.