Chances are that where you own a flat in Creigiau you actually own a long leasehold interest over your property
Leasehold residencies in Creigiau with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest 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; |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you increased control over the value of your Creigiau leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Connor owned a studio flat in Creigiau on the market with a lease of a few days over 59 years unexpired. Connor informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. No ground rent would be payable on a lease extension were Connor to invoke his statutory right. Connor procured expert legal guidance and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
In 2013 we were approached by Dr Alice Jones who, having purchased a studio flat in Creigiau in June 1998. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Comparative residencies in Creigiau with 100 year plus lease were in the region of £235,200. The mid-range amount of ground rent was £45 billed quarterly. The lease elapsed in 2091. Given that there were 66 years outstanding we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus fees.
In 2012 we were approached by Ms C Phillips who, having owned a studio flat in Creigiau in April 1999. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Similar properties in Creigiau with an extended lease were valued about £275,000. The mid-range ground rent payable was £55 collected yearly. The lease came to a finish in 2102. Considering the 77 years unexpired we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including legals.