On the balance of probabilities where you own a flat in Congleton you actually own a long leasehold interest over your property
Leasehold residencies in Congleton with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
The conveyancers that we work with handle Congleton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Subsequent to unsuccessful correspondence with the freeholder of her one bedroom apartment in Congleton, Alicia started the lease extension process as the 80 year mark was rapidly approaching. The lease extension was concluded in May 2006. The landlord’s charges were restricted to slightly above 600 GBP.
Mr and Mrs. D Ricardo was assigned a lease of a first floor apartment in Congleton in September 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Identical properties in Congleton with a long lease were in the region of £208,200. The mid-range ground rent payable was £65 collected every twelve months. The lease finished on 27 August 2086. Considering the 61 years unexpired we approximated the premium to the landlord to extend the lease to be between £20,000 and £23,000 not including costs.
In 2012 we were contacted by Mr and Mrs. Y Carter who, having bought a purpose-built apartment in Congleton in September 1997. We are asked if we could estimate the price could be to extend the lease by an additional years. Similar homes in Congleton with an extended lease were valued about £260,000. The mid-range ground rent payable was £50 collected annually. The lease concluded on 18 April 2097. Taking into account 72 years unexpired we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.