On the balance of probabilities if you own a flat in Dereham you actually own a long leasehold interest over your property
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you better control over the value of your Dereham leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of protracted correspondence with the freeholder of her first floor flat in Dereham, Jade started the lease extension process as the eighty year threshold was fast advancing. The transaction was concluded in August 2012. The freeholder’s charges were negotiated to about 650 pounds.
Last Winter we were e-mailed by Mr and Mrs. V King , who took over the lease of a purpose-built flat in Dereham in May 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Similar flats in Dereham with a long lease were worth £260,000. The average ground rent payable was £50 billed quarterly. The lease terminated on 25 November 2097. Taking into account 72 years outstanding we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.
Last Winter we were called by Mr Logan Bennett , who bought a one bedroom apartment in Dereham in January 2005. The question was if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Similar properties in Dereham with an extended lease were in the region of £256,600. The mid-range amount of ground rent was £60 billed quarterly. The lease lapsed on 19 January 2077. Having 52 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £39,000 and £45,000 plus professional charges.