On the balance of probabilities where you own a flat in Conisbrough you actually own a long leasehold interest over your property
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Chelsea 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. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
The conveyancing solicitors that we work with procure Conisbrough 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 lawyer we work with provide it.
Arthur was the the leasehold owner of a studio flat in Conisbrough on the market with a lease of a little over sixty years outstanding. Arthur on an informal basis spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 annually. No ground rent would be due on a lease extension were Arthur to invoke his statutory right. Arthur procured expert legal guidance and secured an acceptable resolution without going to tribunal and sell the flat.
Last month we were contacted by Ms D Laurent , who took over the lease of a garden apartment in Conisbrough in July 1996. The question was if we could estimate the price could be for a 90 year lease extension. Comparative premises in Conisbrough with 100 year plus lease were in the region of £255,000. The average amount of ground rent was £50 invoiced yearly. The lease expired on 12 April 2096. Given that there were 70 years left we approximated the compensation to the freeholder for the lease extension to be within £10,500 and £12,000 exclusive of costs.
Mr Michael Jones acquired a one bedroom apartment in Conisbrough in June 2011. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparable residencies in Conisbrough with an extended lease were valued around £246,800. The average ground rent payable was £60 invoiced monthly. The lease elapsed in 2076. Having 50 years outstanding we approximated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 not including expenses.