Chances are that where you own a flat in Calverton you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your Calverton leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Joshua was the the leasehold owner of a high value apartment in Calverton on the market with a lease of a few days over fifty eight years remaining. Joshua informally spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Joshua to invoke his statutory right. Joshua procured expert legal guidance and secured satisfactory deal without resorting to tribunal and sell the flat.
In 2013 we were approached by Mr and Mrs. N Hall who, having was assigned a lease of a garden flat in Calverton in August 1996. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical premises in Calverton with 100 year plus lease were valued about £275,000. The mid-range amount of ground rent was £45 collected quarterly. The lease came to a finish in 2094. Having 69 years outstanding we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including professional charges.
In 2014 we were called by Mrs Y Norbert who, having completed a ground floor apartment in Calverton in June 2001. The question was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Similar premises in Calverton with 100 year plus lease were valued about £216,000. The mid-range ground rent payable was £60 invoiced quarterly. The lease ended in 2083. Considering the 58 years remaining we approximated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including professional charges.