Chances are that where you own a flat in Bloxham you actually own a long leasehold interest over your property
Leasehold residencies in Bloxham with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | 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. |
Regardless of whether you are a tenant or a freeholder in Bloxham,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bloxham valuers.
In the wake of 6 months of protracted negotiations with the freeholder of her two bedroom apartment in Bloxham, Jodie initiated the lease extension process just as the lease was approaching the critical 80-year mark. The legal work was concluded in November 2014. The freeholder’s charges were kept to an absolute minimum.
In 2012 we were phoned by Mr and Mrs. S Michel who, having purchased a first floor flat in Bloxham in October 2010. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Similar flats in Bloxham with 100 year plus lease were worth £250,000. The mid-range ground rent payable was £50 collected per annum. The lease came to a finish in 2094. Considering the 69 years remaining we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.
Mr and Mrs. W Clarke bought a recently refurbished apartment in Bloxham in January 2005. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable properties in Bloxham with 100 year plus lease were in the region of £285,000. The average ground rent payable was £55 collected yearly. The lease expired on 15 October 2105. Given that there were 80 years unexpired we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including expenses.