On the balance of probabilities where you own a flat in Trimdon you actually own a long leasehold interest over your property
It is generally accepted that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Trimdon,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Trimdon valuers.
Half a year ago Jason, came perilously close to the eighty-year mark with the lease on his garden apartment in Trimdon. In buying his flat two decades ago, the lease term was of no relevance. Luckily, he realised he would imminently be paying way over the odds for Extending the lease. Jason arranged for a lease extension at the eleventh hour in August. Jason and the freeholder via the managing agents in the end settled on a premium of £6,000 . If the lease had fallen lower than 80 years, the premium would have become more costly by at least £850.
In 2012 we were approached by Dr Jamie Baker who, having owned a garden apartment in Trimdon in January 2003. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Similar properties in Trimdon with an extended lease were valued about £210,600. The mid-range amount of ground rent was £45 billed monthly. The lease came to a finish on 13 June 2087. Taking into account 62 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 not including expenses.
In 2010 we were called by Mr Kyle Davies who, having purchased a ground floor apartment in Trimdon in April 2005. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparable properties in Trimdon with an extended lease were in the region of £265,000. The average amount of ground rent was £50 invoiced monthly. The lease expired in 2098. Considering the 73 years left we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.