Chances are that where you own a flat in East Hunsbury you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in East Hunsbury,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 East Hunsbury valuers.
Last year Dylan, came seriously near to the eighty-year mark with the lease on his purpose- built apartment in East Hunsbury. In buying his property twenty years ago, the length of the lease was of little bearing. Thankfully, he recognised he would soon be paying an inflated amount for Extending the lease. Dylan was able to extend his lease just under the wire last September. Dylan and the landlord who owned the flat above in the end settled on the final figure of £6,000 . If he not met the deadline, the price would have increased by a minimum £1,150.
Last year we were approach by Mr and Mrs. E Williams , who took over the lease of a studio apartment in East Hunsbury in January 2003. The question was if we could approximate the price would likely be for a 90 year lease extension. Identical homes in East Hunsbury with an extended lease were worth £265,000. The average ground rent payable was £50 billed monthly. The lease elapsed on 19 November 2100. Considering the 74 years unexpired we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.
Dr Ali Howard owned a ground floor flat in East Hunsbury in August 1995. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparative flats in East Hunsbury with 100 year plus lease were in the region of £166,400. The average ground rent payable was £60 collected monthly. The lease expired on 8 March 2080. Given that there were 54 years remaining we calculated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of expenses.