Chances are that where you own a flat in Fforestfach you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you increased control over the value of your Fforestfach leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last Summer Rory, started to get close to the 80-year threshold with the lease on his two bedroom apartment in Fforestfach. In buying his flat two decades ago, the length of the lease was of no bearing. by good luck, he became aware that he would imminently be paying way over the odds for a lease extension. Rory arranged for a lease extension at the eleventh hour last January. Rory and the freeholder eventually settled on a premium of £5,500 . If he not met the deadline, the sum would have increased by at least £900.
Last Christmas we were e-mailed by Dr Tyler Khan , who purchased a recently refurbished flat in Fforestfach in August 1998. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparative premises in Fforestfach with an extended lease were worth £225,800. The mid-range ground rent payable was £60 invoiced monthly. The lease terminated on 13 September 2086. Taking into account 60 years left we estimated the premium to the freeholder to extend the lease to be within £25,700 and £29,600 exclusive of costs.
In 2011 we were e-mailed by Mr O Hall who, having acquired a studio apartment in Fforestfach in October 2002. The question was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparable flats in Fforestfach with an extended lease were valued about £210,000. The mid-range ground rent payable was £50 billed every twelve months. The lease ran out on 23 July 2106. Taking into account 80 years outstanding we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including legals.