Chances are that where you own a flat in Canterbury you actually own a long leasehold interest over your property
It is generally accepted that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| Lloyds TSB Scotland | 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. |
The conveyancers that we work with procure Canterbury 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.
Last October Ali, started to get near to the 80-year mark with the lease on his first floor apartment in Canterbury. Having purchased his flat 18 years previously, the length of the lease was of no bearing. Fortunately, he realised he needed to take action soon on Extending the lease. Ali was able to extend his lease just under the wire last January. Ali and the landlord who owned the flat above subsequently agreed on the final figure of £5,500 . If the lease had dropped lower than 80 years, the amount would have become more costly by at least £875.
Dr Daisy Hall bought a one bedroom apartment in Canterbury in February 2000. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Identical premises in Canterbury with an extended lease were worth £218,000. The mid-range amount of ground rent was £45 collected annually. The lease elapsed in 2088. Having 63 years unexpired we calculated the premium to the landlord to extend the lease to be between £17,100 and £19,800 exclusive of expenses.
Last Christmas we were contacted by Dr Luca Flores , who completed a purpose-built apartment in Canterbury in May 2010. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Similar homes in Canterbury with 100 year plus lease were worth £265,000. The average amount of ground rent was £50 invoiced annually. The lease finished in 2099. Having 74 years remaining we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.