On the balance of probabilities if you own a flat in Furzedown you actually own a long leasehold interest over your property
It is generally considered that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with undertake Furzedown 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 conveyancing solicitor we work with provide it.
During the course of the last few months Cameron, came perilously near to the eighty-year mark with the lease on his garden flat in Furzedown. Having bought his property 19 years previously, the lease term was of minimal significance. Luckily, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Cameron was able to extend his lease at the eleventh hour in April. Cameron and the freeholder via the management company eventually settled on sum of £5,500 . If he failed to meet the deadline, the sum would have gone up by a minimum £1,150.
Mrs Danielle Khan was assigned a lease of a recently refurbished apartment in Furzedown in November 2012. The dilemma was if we could approximate the premium would be for a 90 year extension to my lease. Comparable residencies in Furzedown with 100 year plus lease were in the region of £168,800. The average amount of ground rent was £60 invoiced monthly. The lease came to a finish in 2081. Considering the 55 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 plus costs.
Mr and Mrs. O Moore moved into a one bedroom flat in Furzedown in February 2000. The dilemma was if we could estimate the price would be for a ninety year lease extension. Identical residencies in Furzedown with 100 year plus lease were valued around £235,200. The average amount of ground rent was £45 billed yearly. The lease came to a finish on 17 February 2092. Given that there were 66 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus costs.