Chances are that where you own a flat in Borough Green you actually own a long leasehold interest over your property
Leasehold premises in Borough Green with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Borough Green,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Borough Green valuers.
Leo was the the leasehold owner of a studio flat in Borough Green being sold with a lease of just over sixty years outstanding. Leo on an informal basis contacted his landlord a well known Manchester-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Leo to invoke his statutory right. Leo obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Last Autumn we were phoned by Mr and Mrs. A Parker , who acquired a garden apartment in Borough Green in August 1996. The dilemma was if we could approximate the premium would likely be to prolong the lease by ninety years. Comparative properties in Borough Green with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £55 collected every twelve months. The lease lapsed on 1 April 2105. Taking into account 79 years outstanding we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.
Last year we were contacted by Mr G Petit , who bought a ground floor apartment in Borough Green in May 2008. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Similar properties in Borough Green with a long lease were worth £193,400. The mid-range ground rent payable was £65 billed yearly. The lease expired on 22 October 2085. Taking into account 59 years remaining we calculated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of costs.