On the balance of probabilities where you own a flat in East Barming you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with over 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 equivalent in value to a freehold for many years ahead.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you enhanced control over the value of your East Barming leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted correspondence with the freeholder of her ground floor apartment in East Barming, Eleanor started the lease extension process as the eighty year deadline was rapidly advancing. The transaction completed in June 2006. The landlord’s costs were negotiated to slightly above 550 pounds.
In 2013 we were phoned by Mr and Mrs. G Gray who, having bought a basement apartment in East Barming in October 2008. The dilemma was if we could estimate the price would be to extend the lease by ninety years. Comparable homes in East Barming with 100 year plus lease were valued about £254,200. The mid-range ground rent payable was £60 collected annually. The lease lapsed in 2076. Taking into account 51 years unexpired we estimated the compensation to the landlord to extend the lease to be between £43,700 and £50,600 not including professional charges.
Last May we were e-mailed by Mr Matthew White , who purchased a newly refurbished apartment in East Barming in May 2006. The question was if we could estimate the price could be for a 90 year lease extension. Comparable flats in East Barming with a long lease were valued around £210,600. The average amount of ground rent was £45 collected every twelve months. The lease elapsed on 3 March 2087. Taking into account 62 years remaining we approximated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 exclusive of costs.