On the balance of probabilities where you own a flat in Exton you actually own a long leasehold interest over your property
Leasehold premises in Exton with more than 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 premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you better control over the value of your Exton leasehold, as your property will be more valuable and saleable in respect 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.
Twenty four months ago Henry, started to get close to the eighty-year threshold with the lease on his two bedroom flat in Exton. In buying his home two decades ago, the unexpired term was of little bearing. by good luck, he recognised he needed to take action soon on Extending the lease. Henry extended the lease at the eleventh hour in April. Henry and the freeholder via the managing agents eventually agreed on sum of £5,500 . If he had missed the deadline, the amount would have escalated by a minimum £1,100.
Last Winter we were approach by Dr T Allen , who purchased a ground floor flat in Exton in January 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by a further 90 years. Comparable premises in Exton with an extended lease were in the region of £181,600. The average amount of ground rent was £55 invoiced annually. The lease concluded on 22 November 2078. Given that there were 52 years unexpired we calculated the premium to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of costs.
Last Autumn we were approach by Dr Finn Davies , who took over the lease of a garden flat in Exton in February 2002. The question was if we could approximate the price could be for a 90 year extension to my lease. Identical premises in Exton with a long lease were worth £285,000. The average amount of ground rent was £45 collected yearly. The lease ran out on 13 August 2098. Taking into account 72 years unexpired we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of expenses.