Chances are that if you own a flat in Birch and Middleton you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to 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. |
| 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 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Birch and Middleton,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 Birch and Middleton valuers.
Harrison was the the leasehold proprietor of a 2 bedroom flat in Birch and Middleton on the market with a lease of a little over fifty eight years outstanding. Harrison on an informal basis spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 yearly. No ground rent would be due on a lease extension were Harrison to exercise his statutory right. Harrison procured expert advice and secured an acceptable deal without going to tribunal and readily saleable.
Mr G Johnson acquired a recently refurbished apartment in Birch and Middleton in August 2008. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Similar premises in Birch and Middleton with an extended lease were in the region of £295,000. The average amount of ground rent was £45 billed per annum. The lease ended on 13 October 2099. Having 74 years left we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including fees.
Mr and Mrs. I Adams purchased a newly refurbished flat in Birch and Middleton in February 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by 90 years. Comparable residencies in Birch and Middleton with a long lease were valued about £243,000. The average ground rent payable was £65 billed monthly. The lease expired on 1 April 2088. Considering the 63 years unexpired we calculated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 not including fees.