On the balance of probabilities if you own a flat in Alfriston you actually own a long leasehold interest over your property
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| 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 landlord in Alfriston,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Alfriston valuers.
Off the back of protracted negotiations with the freeholder of her purpose-built flat in Alfriston, Isabel initiated the lease extension process as the eighty year mark was fast coming. The legal work completed in April 2008. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. U Taylor moved into a ground floor flat in Alfriston in July 2007. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by ninety years. Identical homes in Alfriston with an extended lease were valued around £280,000. The average ground rent payable was £45 invoiced every twelve months. The lease ran out in 2095. Having 70 years left we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus professional charges.
Last month we were approach by Mr M García , who moved into a studio apartment in Alfriston in October 1996. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Similar flats in Alfriston with an extended lease were worth £223,400. The average amount of ground rent was £60 billed per annum. The lease expired on 25 May 2084. Given that there were 59 years outstanding we estimated the premium to the freeholder for the lease extension to be within £27,600 and £31,800 plus fees.