On the balance of probabilities where you own a flat in Croesyceiliog you actually own a long leasehold interest over your property
Leasehold properties in Croesyceiliog with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit 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; |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Regardless of whether you are a tenant or a landlord in Croesyceiliog,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 Croesyceiliog valuers.
Trailing unsuccessful negotiations with the landlord of her basement flat in Croesyceiliog, Leah initiated the lease extension process as the eighty year threshold was fast coming. The legal work was finalised in October 2013. The landlord’s costs were negotiated to a tad over 700 GBP.
Last month we were approach by Dr M André , who moved into a garden flat in Croesyceiliog in June 2012. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical residencies in Croesyceiliog with 100 year plus lease were valued about £300,000. The mid-range ground rent payable was £50 invoiced yearly. The lease ran out in 2101. Taking into account 76 years left we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of costs.
Mr and Mrs. P Michel moved into a purpose-built apartment in Croesyceiliog in September 2001. The question was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Similar homes in Croesyceiliog with an extended lease were in the region of £257,800. The mid-range amount of ground rent was £65 collected every twelve months. The lease ended on 11 June 2090. Taking into account 65 years remaining we approximated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 plus fees.