On the balance of probabilities if you own a flat in Alnwick you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Using our service gives you increased control over the value of your Alnwick leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Mason, started to get near to the 80-year mark with the lease on his one bedroom flat in Alnwick. In buying his flat two decades ago, the lease term was of little relevance. Fortunately, he recognised he would soon be paying an escalated premium for a lease extension. Mason was able to extend his lease just under the wire last March. Mason and the freeholder in the end agreed on a premium of £5,500 . If he not met the deadline, the figure would have escalated by a minimum £1,075.
In 2012 we were approached by Dr Niamh Ward who, having was assigned a lease of a studio flat in Alnwick in June 2009. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Comparative residencies in Alnwick with an extended lease were worth £200,000. The mid-range ground rent payable was £50 invoiced yearly. The lease expired in 2102. Having 77 years as a residual term we approximated the premium to the landlord to extend the lease to be between £8,600 and £9,800 not including legals.
Last Christmas we were called by Dr Alicia David , who moved into a basement apartment in Alnwick in March 2010. The dilemma was if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparative homes in Alnwick with a long lease were valued about £260,200. The average ground rent payable was £65 billed quarterly. The lease lapsed on 21 September 2091. Given that there were 66 years left we approximated the premium to the landlord to extend the lease to be within £16,200 and £18,600 not including professional charges.