For anyone whose Church Village flat is held on a long lease, the message is clear – if you do nothing, your property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to extend the lease.
Leasehold residencies in Church Village with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a landlord in Church Village,the lease extension lawyers 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 Church Village valuers.
Jayden was the the leasehold proprietor of a conversion apartment in Church Village on the market with a lease of just over 59 years remaining. Jayden on an informal basis contacted his freeholder being a well known local-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Jayden to exercise his statutory right. Jayden procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the flat.
Last Summer we were contacted by Dr C Bennett , who was assigned a lease of a basement flat in Church Village in September 2002. The question was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Similar properties in Church Village with a long lease were valued about £218,000. The average amount of ground rent was £45 collected per annum. The lease ran out in 2088. Considering the 63 years unexpired we approximated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 exclusive of expenses.
Dr Zachary Martínez moved into a garden apartment in Church Village in May 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Similar properties in Church Village with 100 year plus lease were worth £265,000. The mid-range amount of ground rent was £50 billed quarterly. The lease end date was on 4 October 2098. Taking into account 73 years remaining we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.