Chances are that where you own a flat in Feltwell you actually own a long leasehold interest over your property
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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 also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 handle Feltwell 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 conveyancer we work with provide it.
Last Christmas Charlie, came precariously near to the eighty-year threshold with the lease on his basement flat in Feltwell. In buying his property 18 years ago, the lease term was of minimal concern. Fortunately, he realised he needed to take action soon on Extending the lease. Charlie arranged for a lease extension at the eleventh hour last May. Charlie and the landlord ultimately settled on a premium of £5,000 . If the lease had descended below 80 years, the figure would have gone up by a minimum £1,125.
In 2010 we were phoned by Mrs W Lee who, having moved into a purpose-built flat in Feltwell in October 1999. The question was if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparable residencies in Feltwell with a long lease were worth £176,200. The mid-range ground rent payable was £65 billed yearly. The lease finished in 2081. Given that there were 56 years left we estimated the compensation to the freeholder to extend the lease to be between £29,500 and £34,000 not including costs.
Mr F Thomas was assigned a lease of a first floor apartment in Feltwell in November 2006. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Identical flats in Feltwell with 100 year plus lease were valued around £235,200. The mid-range amount of ground rent was £45 invoiced annually. The lease lapsed in 2091. Given that there were 66 years remaining we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of fees.