Chances are that where you own a flat in Clent you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
Using our service will provide you increased control over the value of your Clent leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy discussions with the freeholder of her basement flat in Clent, Ellie initiated the lease extension process just as her lease was nearing the crucial 80-year deadline. The lease extension was concluded in May 2010. The landlord’s costs were kept to an absolute minimum.
Last year we were phoned by Mrs Imogen Nguyen , who moved into a newly refurbished flat in Clent in February 2011. The question was if we could estimate the price would be for a ninety year lease extension. Similar homes in Clent with a long lease were valued about £275,000. The average amount of ground rent was £45 invoiced every twelve months. The lease lapsed in 2094. Considering the 69 years outstanding we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including expenses.
Last Summer we were contacted by Dr S Gómez , who completed a garden apartment in Clent in April 2011. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable premises in Clent with 100 year plus lease were worth £216,000. The average ground rent payable was £60 collected yearly. The lease ran out on 2 September 2083. Taking into account 58 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of expenses.