On the balance of probabilities where you own a flat in Bickley you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Retaining our service will provide you increased control over the value of your Bickley leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Ali, came perilously near to the 80-year threshold with the lease on his studio flat in Bickley. In buying his home two decades ago, the unexpired term was of little significance. Luckily, he noticed he needed to take steps soon on a lease extension. Ali extended the lease just ahead of time last April. Ali and the freeholder via the managing agents ultimately agreed on a premium of £6,000 . If he not met the deadline, the figure would have become more exhorbitant by at least £1,075.
Last Autumn we were approach by Mr N Torres , who bought a one bedroom apartment in Bickley in November 1996. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Comparative residencies in Bickley with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease elapsed on 21 February 2101. Taking into account 76 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.
An example of a Lease Extension matter before the tribunal for a Bickley premises is 1 Southlands Court Southlands Road in September 2013. The Leasehold Valuation Tribunal determined that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993 was £30,541 This case was in relation to 1 flat. The remaining number of years on the lease was 50.57 years.