Chances are that where you own a flat in Birchington you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to 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; |
| 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. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Birchington,the lease extension lawyers 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 Birchington valuers.
Trailing lengthy discussions with the freeholder of her basement apartment in Birchington, Georgia started the lease extension process just as her lease was nearing the crucial eighty-year mark. The legal work was finalised in April 2014. The freeholder’s charges were restricted to approximately 500 pounds.
Last Summer we were e-mailed by Mrs Rachael Allen , who was assigned a lease of a one bedroom apartment in Birchington in October 1995. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by ninety years. Comparable homes in Birchington with an extended lease were worth £200,000. The mid-range ground rent payable was £50 billed monthly. The lease terminated on 8 May 2102. Given that there were 77 years unexpired we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus costs.
Mr and Mrs. U Alexander was assigned a lease of a one bedroom flat in Birchington in March 1995. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Identical flats in Birchington with 100 year plus lease were worth £260,200. The mid-range amount of ground rent was £65 billed annually. The lease expired in 2091. Having 66 years left we approximated the premium to the landlord for the lease extension to be within £16,200 and £18,600 exclusive of professional charges.