On the balance of probabilities where you own a flat in Boreham you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in Boreham can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Boreham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jake was the the leasehold owner of a conversion flat in Boreham being marketed with a lease of just over fifty eight years left. Jake informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jake to exercise his statutory right. Jake procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last year we were phoned by Dr B Gómez , who owned a studio flat in Boreham in June 2012. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by 90 years. Comparable properties in Boreham with a long lease were valued around £264,000. The average ground rent payable was £60 collected per annum. The lease ran out on 27 May 2078. Having 53 years unexpired we calculated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 plus costs.
In 2011 we were contacted by Dr T Torres who, having was assigned a lease of a one bedroom flat in Boreham in August 2012. We are asked if we could approximate the price would be to extend the lease by an additional years. Comparative flats in Boreham with 100 year plus lease were worth £225,400. The average amount of ground rent was £45 billed per annum. The lease expired in 2089. Considering the 64 years left we calculated the premium to the freeholder to extend the lease to be between £15,200 and £17,600 plus expenses.