Chances are that where you own a flat in Copmanthorpe you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Copmanthorpe,the lease extension solicitors 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 Copmanthorpe valuers.
Muhammad owned a conversion flat in Copmanthorpe on the market with a lease of a few days over 59 years remaining. Muhammad informally approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Muhammad to invoke his statutory right. Muhammad procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the flat.
In 2013 we were contacted by Mr and Mrs. V Cook who, having took over the lease of a purpose-built flat in Copmanthorpe in June 2004. The dilemma was if we could estimate the premium would be to extend the lease by a further 90 years. Comparative premises in Copmanthorpe with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £55 collected yearly. The lease terminated on 2 August 2105. Considering the 80 years left we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including fees.
Last Christmas we were approach by Dr Hunter Green , who purchased a one bedroom flat in Copmanthorpe in June 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Similar properties in Copmanthorpe with 100 year plus lease were valued around £200,800. The average amount of ground rent was £65 billed monthly. The lease concluded in 2085. Considering the 60 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 plus costs.