On the balance of probabilities if you own a flat in Canterbury you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Canterbury,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Canterbury valuers.
Henry was the the leasehold proprietor of a high value apartment in Canterbury on the market with a lease of a few days over 72 years remaining. Henry on an informal basis approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Henry to exercise his statutory right. Henry procured expert advice and was able to make an informed decision and handle with the matter and sell the property.
Mr and Mrs. I Girard moved into a basement flat in Canterbury in March 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Identical residencies in Canterbury with an extended lease were valued around £254,200. The average amount of ground rent was £60 billed annually. The lease terminated in 2076. Considering the 51 years left we estimated the compensation to the freeholder for the lease extension to be within £43,700 and £50,600 plus costs.
Mr C Laurent acquired a basement apartment in Canterbury in September 2012. The question was if we could approximate the price could be to prolong the lease by a further 90 years. Identical residencies in Canterbury with a long lease were in the region of £210,600. The average ground rent payable was £45 invoiced every twelve months. The lease concluded on 24 April 2087. Given that there were 62 years unexpired we calculated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 plus costs.