Chances are that where you own a flat in Ainsdale you actually own a long leasehold interest over your property
Leasehold properties in Ainsdale 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 premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate 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 are not acceptable. 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; |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Ainsdale,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 in-depth market knowledge and the close ties they enjoy with Ainsdale valuers.
Last October Leon, started to get near to the eighty-year threshold with the lease on his purpose- built apartment in Ainsdale. In buying his home two decades ago, the lease term was of minimal interest. by good luck, he realised he needed to take action soon on Extending the lease. Leon was able to extend his lease just in the nick of time last August. Leon and the freeholder in the end agreed on the final figure of £5,500 . If the lease had slid lower than 80 years, the price would have become more costly by a minimum £1,000.
In 2013 we were phoned by Mr and Mrs. L Morgan who, having bought a recently refurbished flat in Ainsdale in September 1997. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparable flats in Ainsdale with 100 year plus lease were in the region of £295,000. The mid-range amount of ground rent was £45 billed annually. The lease ran out on 12 May 2100. Having 74 years left we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus legals.
Last Winter we were e-mailed by Mr and Mrs. W Davis , who completed a studio apartment in Ainsdale in July 2003. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical residencies in Ainsdale with 100 year plus lease were in the region of £248,000. The mid-range amount of ground rent was £65 billed yearly. The lease elapsed on 4 November 2089. Considering the 63 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 plus costs.