On the balance of probabilities if you own a flat in Easton you actually own a long leasehold interest over your property
Leasehold premises in Easton with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Halifax | Minimum 70 years from the date 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Easton,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Easton valuers.
Lewis was the the leasehold owner of a 2 bedroom flat in Easton being sold with a lease of just over sixty years left. Lewis informally contacted his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Lewis to invoke his statutory right. Lewis obtained expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
In 2011 we were called by Mr and Mrs. V Wood who, having took over the lease of a recently refurbished apartment in Easton in March 1999. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable residencies in Easton with a long lease were valued about £166,400. The mid-range amount of ground rent was £60 invoiced quarterly. The lease came to a finish in 2080. Considering the 54 years outstanding we calculated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 not including professional charges.
Last Spring we were contacted by Mr and Mrs. U Cooper , who took over the lease of a studio apartment in Easton in July 2011. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by 90 years. Similar residencies in Easton with 100 year plus lease were in the region of £227,800. The mid-range amount of ground rent was £45 invoiced monthly. The lease lapsed in 2091. Considering the 65 years left we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus expenses.