On the balance of probabilities where you own a flat in Emersons Green you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you enhanced control over the value of your Emersons Green leasehold, as your property will be more valuable and marketable in terms 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.
Nathan was the the leasehold proprietor of a studio flat in Emersons Green on the market with a lease of a little over 72 years left. Nathan on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Nathan to invoke his statutory right. Nathan procured expert advice and was able to make an informed decision and deal with the matter and readily saleable.
Ms I Moore purchased a studio flat in Emersons Green in February 1997. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Similar premises in Emersons Green with a long lease were in the region of £275,000. The mid-range amount of ground rent was £65 billed per annum. The lease concluded in 2094. Having 68 years remaining we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including fees.
Last month we were e-mailed by Mrs H Carter , who took over the lease of a ground floor flat in Emersons Green in June 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by ninety years. Comparative premises in Emersons Green with an extended lease were in the region of £208,600. The average amount of ground rent was £60 collected monthly. The lease concluded in 2083. Having 57 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 exclusive of expenses.