Chances are that if you own a flat in Emersons Green you actually own a long leasehold interest over your property
Leasehold premises in Emersons Green with in excess of one hundred years left on the lease are often referred to as ‘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 to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Emersons Green,the lease extension experts 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 Emersons Green valuers.
Last year John, started to get close to the 80-year threshold with the lease on his one bedroom flat in Emersons Green. Having purchased his flat two decades ago, the lease term was of no relevance. Fortunately, he recognised he would imminently be paying way over the odds for a lease extension. John extended the lease at the eleventh hour last September. John and the landlord in the end agreed on an amount of £5,000 . If he not met the deadline, the amount would have gone up by at least £1,100.
In 2013 we were phoned by Dr Milo Sharif who, having was assigned a lease of a garden apartment in Emersons Green in January 2008. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar residencies in Emersons Green with an extended lease were worth £233,200. The mid-range ground rent payable was £60 billed quarterly. The lease concluded in 2086. Taking into account 61 years remaining we approximated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 plus fees.
Last month we were contacted by Mr and Mrs. P Roberts , who moved into a newly refurbished flat in Emersons Green in May 1998. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by 90 years. Comparable premises in Emersons Green with an extended lease were in the region of £171,800. The mid-range ground rent payable was £55 invoiced monthly. The lease concluded in 2075. Given that there were 50 years left we calculated the premium to the landlord to extend the lease to be between £32,300 and £37,400 not including legals.