On the balance of probabilities where you own a flat in England Springs you actually own a long leasehold interest over your property
Leasehold premises in England Springs with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate 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. |
| 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. |
| 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 | 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:
|
| 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. |
Retaining our service gives you enhanced control over the value of your England Springs 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 are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Dylan was the the leasehold proprietor of a high value apartment in England Springs on the market with a lease of a little over 59 years unexpired. Dylan informally contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant 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 doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Dylan to invoke his statutory right. Dylan procured expert advice and secured satisfactory deal without resorting to tribunal and readily saleable.
In 2012 we were contacted by Ms Jodie Ricardo who, having completed a studio apartment in England Springs in May 2012. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Identical properties in England Springs with a long lease were valued about £270,000. The average amount of ground rent was £55 collected every twelve months. The lease end date was on 12 November 2101. Taking into account 75 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.
Ms Charlotte Alexander took over the lease of a purpose-built flat in England Springs in May 2000. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Comparable premises in England Springs with 100 year plus lease were valued around £168,800. The mid-range amount of ground rent was £60 billed every twelve months. The lease ran out in 2081. Considering the 55 years remaining we estimated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of legals.