Chances are that where you own a flat in Church Village you actually own a long leasehold interest over your property
Leasehold residencies in Church Village with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Church Village,the lease extension solicitors 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 Church Village valuers.
Two years ago Austin, started to get near to the 80-year threshold with the lease on his two bedroom flat in Church Village. Having purchased his home twenty years previously, the unexpired term was of no concern. Thankfully, he noticed he needed to take action soon on a lease extension. Austin extended the lease at the eleventh hour last August. Austin and the landlord subsequently settled on an amount of £5,000 . If he not met the deadline, the amount would have escalated by at least £925.
Ms O Cooper owned a purpose-built apartment in Church Village in January 2007. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by a further 90 years. Comparative flats in Church Village with an extended lease were worth £270,000. The average amount of ground rent was £55 billed annually. The lease came to a finish in 2100. Given that there were 75 years unexpired we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including expenses.
Last Christmas we were e-mailed by Mr and Mrs. P Lefèvre , who purchased a purpose-built apartment in Church Village in April 2006. The question was if we could estimate the premium could be for a 90 year extension to my lease. Comparable flats in Church Village with an extended lease were worth £168,800. The mid-range ground rent payable was £60 invoiced every twelve months. The lease came to a finish on 13 October 2080. Considering the 55 years left we estimated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 not including professional charges.