On the balance of probabilities where you own a flat in Congleton you actually own a long leasehold interest over your property
Leasehold premises in Congleton with more than 100 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 circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant 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; |
| 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Congleton,the lease extension experts 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 Congleton valuers.
In recent months Max, started to get near to the 80-year threshold with the lease on his two bedroom flat in Congleton. In buying his property 18 years ago, the lease term was of little concern. As luck would have it, he noticed he would imminently be paying way over the odds for a lease extension. Max extended the lease just under the wire last April. Max and the freeholder via the management company in the end settled on a premium of £5,000 . If he not met the deadline, the sum would have escalated by a minimum £1,000.
Mr and Mrs. T Kelly acquired a newly refurbished flat in Congleton in June 1999. We are asked if we could estimate the premium would be to extend the lease by a further 90 years. Similar properties in Congleton with a long lease were worth £176,200. The mid-range amount of ground rent was £65 billed per annum. The lease lapsed on 10 August 2081. Considering the 56 years remaining we approximated the premium to the landlord to extend the lease to be within £29,500 and £34,000 exclusive of expenses.
In 2013 we were phoned by Mr Riley Ward who, having took over the lease of a one bedroom flat in Congleton in November 2004. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparative flats in Congleton with an extended lease were valued around £242,600. The mid-range amount of ground rent was £45 collected quarterly. The lease concluded on 6 June 2092. Having 67 years left we approximated the premium to the landlord for the lease extension to be between £11,400 and £13,200 plus fees.