On the balance of probabilities where you own a flat in Desford you actually own a long leasehold interest over your property
Leasehold properties in Desford with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Desford can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Desford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Jude, came critically close to the eighty-year threshold with the lease on his first floor flat in Desford. Having bought his home two decades ago, the lease term was of no relevance. Thankfully, he noticed he needed to take action soon on Extending the lease. Jude extended the lease just under the wire last April. Jude and the landlord ultimately settled on sum of £6,000 . If he not met the deadline, the sum would have increased by at least £850.
Mrs Katie Nguyen moved into a garden flat in Desford in October 2002. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar premises in Desford with an extended lease were valued about £235,200. The average amount of ground rent was £45 collected annually. The lease ran out in 2091. Taking into account 66 years remaining we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus professional charges.
In 2010 we were contacted by Mrs Rebecca Gunderson who, having acquired a one bedroom flat in Desford in April 1995. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year lease extension. Identical flats in Desford with a long lease were worth £280,000. The mid-range ground rent payable was £55 billed annually. The lease elapsed on 27 October 2102. Considering the 77 years remaining we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of legals.