Chances are that if you own a flat in Borrowash you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
Engaging our service will provide you better control over the value of your Borrowash leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful discussions with the landlord of her first floor flat in Borrowash, Jennifer started the lease extension process just as the lease was coming close to the critical 80-year deadline. The lease extension was finalised in July 2013. The landlord’s charges were kept to an absolute minimum.
Mr and Mrs. L Cox completed a newly refurbished apartment in Borrowash in July 1996. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar premises in Borrowash with a long lease were valued around £176,200. The mid-range amount of ground rent was £65 billed annually. The lease expired on 22 July 2081. Given that there were 56 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 plus professional charges.
In 2010 we were called by Mr and Mrs. K Girard who, having was assigned a lease of a purpose-built flat in Borrowash in November 2000. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Similar homes in Borrowash with 100 year plus lease were valued about £235,200. The mid-range amount of ground rent was £45 collected per annum. The lease ended in 2091. Considering the 66 years unexpired we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.