On the balance of probabilities if you own a flat in Admaston you actually own a long leasehold interest over your property
Leasehold properties in Admaston with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Admaston can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Admaston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Theo was the the leasehold owner of a conversion flat in Admaston on the market with a lease of a little over 61 years remaining. Theo on an informal basis contacted his landlord being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Theo to exercise his statutory right. Theo obtained expert advice and was able to make an informed judgement and deal with the matter and sell the property.
In 2014 we were called by Mrs N Wilson who, having acquired a recently refurbished apartment in Admaston in August 1997. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Comparative properties in Admaston with an extended lease were worth £255,000. The average amount of ground rent was £50 billed quarterly. The lease ended in 2095. Taking into account 70 years left we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.
Mr T Anderson moved into a one bedroom flat in Admaston in October 2009. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparative flats in Admaston with a long lease were worth £246,800. The average ground rent payable was £60 collected every twelve months. The lease terminated on 14 July 2075. Having 50 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £44,700 and £51,600 exclusive of legals.