On the balance of probabilities if you own a flat in Cringleford you actually own a long leasehold interest over your property
Leasehold residencies in Cringleford with over one hundred years left on the lease are sometimes regarded as a ‘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 purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service gives you increased control over the value of your Cringleford leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Leon, came critically near to the 80-year threshold with the lease on his leasehold flat in Cringleford. Having bought his property two decades ago, the lease term was of minimal significance. As luck would have it, he realised he needed to take action soon on a lease extension. Leon arranged for a lease extension just ahead of time in September. Leon and the landlord who owned the flat above subsequently settled on a premium of £5,000 . If he failed to meet the deadline, the figure would have escalated by at least £1,000.
Last Christmas we were contacted by Mrs A Wright , who acquired a ground floor flat in Cringleford in September 1999. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparable premises in Cringleford with a long lease were in the region of £243,000. The mid-range amount of ground rent was £65 invoiced yearly. The lease concluded on 6 August 2089. Considering the 63 years outstanding we calculated the premium to the landlord for the lease extension to be between £20,000 and £23,000 exclusive of professional charges.
Last Winter we were contacted by Mrs R Turner , who completed a one bedroom flat in Cringleford in October 2012. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Identical homes in Cringleford with 100 year plus lease were worth £181,600. The mid-range amount of ground rent was £55 invoiced quarterly. The lease concluded in 2078. Considering the 52 years left we calculated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of professional charges.