Chances are that where you own a flat in Emersons Green you actually own a long leasehold interest over your property
Leasehold residencies in Emersons Green with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
The conveyancers that we work with procure Emersons Green lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
After protracted discussions with the freeholder of her studio flat in Emersons Green, Zoe initiated the lease extension process as the 80 year threshold was rapidly approaching. The transaction was finalised in February 2006. The freeholder’s fees were kept to an absolute minimum.
In 2014 we were contacted by Mr and Mrs. D Murphy who, having acquired a one bedroom flat in Emersons Green in March 2007. We are asked if we could approximate the price could be to extend the lease by an additional years. Similar residencies in Emersons Green with a long lease were worth £295,000. The mid-range amount of ground rent was £45 collected monthly. The lease expired on 4 November 2100. Given that there were 74 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.
Last Christmas we were phoned by Ms H Howard , who purchased a ground floor flat in Emersons Green in September 2003. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar properties in Emersons Green with 100 year plus lease were worth £243,000. The mid-range ground rent payable was £65 collected monthly. The lease finished on 8 June 2089. Having 63 years remaining we calculated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 not including legals.