On the balance of probabilities where you own a flat in Catton you actually own a long leasehold interest over your property
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Catton,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Catton valuers.
In recent months Connor, started to get near to the eighty-year threshold with the lease on his basement apartment in Catton. Having purchased his flat two decades ago, the unexpired term was of minimal significance. Luckily, he recognised he needed to take action soon on a lease extension. Connor was able to extend his lease just under the wire in August. Connor and the landlord who owned the flat above eventually settled on an amount of £6,000 . If he not met the deadline, the premium would have escalated by a minimum £900.
In 2012 we were called by Dr F White who, having moved into a purpose-built flat in Catton in January 2001. The dilemma was if we could shed any light on how much (approximately) premium would be to prolong the lease by a further 90 years. Identical properties in Catton with an extended lease were valued around £275,000. The average amount of ground rent was £45 invoiced quarterly. The lease came to a finish in 2095. Considering the 69 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus expenses.
In 2011 we were contacted by Mr and Mrs. A Jackson who, having moved into a one bedroom flat in Catton in September 2005. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Similar residencies in Catton with an extended lease were worth £216,000. The average amount of ground rent was £60 billed every twelve months. The lease elapsed on 15 April 2084. Having 58 years left we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of costs.