On the balance of probabilities if you own a flat in Trimdon you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a landlord in Trimdon,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Trimdon valuers.
In recent months Oscar, started to get close to the eighty-year mark with the lease on his two bedroom flat in Trimdon. In buying his property two decades ago, the unexpired term was of little interest. Fortunately, it dawned on him that he needed to take action soon on a lease extension. Oscar was able to extend his lease at the eleventh hour in May. Oscar and the landlord who owned the flat above eventually agreed on the final figure of £5,500 . If the lease had dipped below 80 years, the amount would have increased by at least £1,100.
Dr S Peterson owned a first floor apartment in Trimdon in January 2005. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Similar flats in Trimdon with a long lease were valued around £166,400. The average ground rent payable was £60 billed annually. The lease elapsed in 2079. Given that there were 54 years remaining we calculated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 plus expenses.
Last month we were phoned by Dr Mollie David , who acquired a one bedroom flat in Trimdon in March 2012. The question was if we could approximate the premium would likely be to prolong the lease by ninety years. Comparable residencies in Trimdon with a long lease were valued about £227,800. The average amount of ground rent was £45 invoiced every twelve months. The lease came to a finish in 2090. Considering the 65 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including costs.