On the balance of probabilities where you own a flat in Chew Magna you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Chew Magna,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chew Magna valuers.
Off the back of unsuccessful correspondence with the landlord of her one bedroom apartment in Chew Magna, Francesca initiated the lease extension process just as the lease was approaching the critical 80-year threshold. The transaction completed in July 2014. The landlord’s fees were kept to an absolute minimum.
In 2012 we were phoned by Dr Molly Morris who, having bought a one bedroom flat in Chew Magna in October 1999. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar flats in Chew Magna with an extended lease were in the region of £225,400. The average amount of ground rent was £45 invoiced monthly. The lease ended in 2089. Given that there were 64 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £15,200 and £17,600 plus legals.
In 2009 we were contacted by Ms F Green who, having took over the lease of a ground floor apartment in Chew Magna in April 2004. The question was if we could approximate the premium would be to prolong the lease by 90 years. Identical properties in Chew Magna with an extended lease were valued around £270,000. The mid-range amount of ground rent was £55 billed quarterly. The lease elapsed on 7 August 2100. Given that there were 75 years outstanding we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.