Chances are that if you own a flat in Geddington you actually own a long leasehold interest over your property
Leasehold residencies in Geddington with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘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 to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| Coventry Building Society | 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. |
| 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. |
Engaging our service will provide you enhanced control over the value of your Geddington leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy negotiations with the landlord of her ground floor apartment in Geddington, Rachel initiated the lease extension process as the eighty year threshold was swiftly nearing. The transaction completed in June 2014. The landlord’s fees were kept to an absolute minimum.
Last August we were contacted by Ms U Mitchell , who was assigned a lease of a one bedroom flat in Geddington in April 1998. The dilemma was if we could approximate the premium would likely be to extend the lease by ninety years. Similar homes in Geddington with 100 year plus lease were valued around £265,000. The mid-range ground rent payable was £50 invoiced per annum. The lease terminated in 2099. Considering the 73 years left we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.
In 2013 we were contacted by Dr Dexter Morgan who, having acquired a purpose-built apartment in Geddington in November 1995. The question was if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Identical residencies in Geddington with an extended lease were in the region of £264,000. The mid-range ground rent payable was £60 collected yearly. The lease elapsed in 2079. Given that there were 53 years outstanding we calculated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 plus costs.