Chances are that where you own a flat in Boroughbridge you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancing solicitors that we work with undertake Boroughbridge lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Ali was the the leasehold proprietor of a studio flat in Boroughbridge on the market with a lease of a few days over fifty eight years unexpired. Ali on an informal basis spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Ali to exercise his statutory right. Ali obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and sell the flat.
Mr and Mrs. D Morel moved into a purpose-built apartment in Boroughbridge in September 2004. The dilemma was if we could shed any light on how much (approximately) premium would likely be to extend the lease by an additional years. Similar homes in Boroughbridge with a long lease were in the region of £174,200. The average ground rent payable was £55 invoiced quarterly. The lease lapsed on 13 May 2076. Taking into account 51 years left we approximated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of expenses.
Last year we were e-mailed by Mr and Mrs. T Wright , who completed a newly refurbished flat in Boroughbridge in June 2007. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar homes in Boroughbridge with 100 year plus lease were worth £285,000. The average amount of ground rent was £45 invoiced per annum. The lease came to a finish on 20 April 2096. Considering the 71 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of legals.