Chances are that if you own a flat in Binstead you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises 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; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
The conveyancing solicitors that we work with procure Binstead lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Last year Archie, started to get close to the eighty-year threshold with the lease on his leasehold apartment in Binstead. In buying his flat 18 years previously, the length of the lease was of little bearing. Fortunately, he realised he would soon be paying way over the odds for Extending the lease. Archie arranged for a lease extension just in the nick of time last January. Archie and the landlord who owned the flat above in the end settled on a premium of £6,000 . If he failed to meet the deadline, the sum would have become more costly by at least £925.
Dr K Michel was assigned a lease of a garden flat in Binstead in June 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Comparable properties in Binstead with an extended lease were worth £285,000. The mid-range amount of ground rent was £55 billed monthly. The lease ended in 2104. Given that there were 79 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including professional charges.
Last Autumn we were called by Dr L Thompson , who moved into a purpose-built flat in Binstead in April 1997. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Similar residencies in Binstead with 100 year plus lease were valued around £193,400. The average amount of ground rent was £65 billed quarterly. The lease ran out in 2084. Having 59 years as a residual term we estimated the premium to the landlord to extend the lease to be within £21,900 and £25,200 not including costs.