Chances are that if you own a flat in East Leake you actually own a long leasehold interest over your property
Leasehold premises in East Leake with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | 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 30 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you better control over the value of your East Leake leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers 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 one bedroom flat in East Leake, Leah initiated the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The transaction completed in January 2012. The freeholder’s fees were restricted to under 700 GBP.
Last Winter we were called by Mr and Mrs. V Khan , who completed a first floor flat in East Leake in March 2009. The question was if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Similar properties in East Leake with an extended lease were worth £260,200. The mid-range ground rent payable was £65 billed yearly. The lease elapsed in 2092. Taking into account 66 years left we estimated the premium to the freeholder to extend the lease to be within £16,200 and £18,600 exclusive of expenses.
In 2010 we were phoned by Dr Jonathan Clark who, having was assigned a lease of a purpose-built flat in East Leake in August 2006. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparative homes in East Leake with 100 year plus lease were worth £198,800. The mid-range ground rent payable was £55 collected quarterly. The lease finished on 27 January 2081. Having 55 years unexpired we approximated the premium to the landlord to extend the lease to be within £33,300 and £38,400 exclusive of costs.