On the balance of probabilities where you own a flat in Gillingham you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you increased control over the value of your Gillingham leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful negotiations with the landlord of her two bedroom apartment in Gillingham, Samantha started the lease extension process as the eighty year threshold was fast advancing. The lease extension completed in June 2009. The landlord’s fees were kept to an absolute minimum.
Mr Alex Patel completed a recently refurbished flat in Gillingham in January 2002. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Comparative flats in Gillingham with an extended lease were valued about £265,000. The average amount of ground rent was £50 invoiced per annum. The lease came to a finish in 2099. Considering the 73 years remaining we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.
In 2010 we were called by Ms Samantha Wilson who, having completed a one bedroom apartment in Gillingham in April 1995. The dilemma was if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparative homes in Gillingham with 100 year plus lease were valued around £264,000. The mid-range ground rent payable was £60 invoiced per annum. The lease concluded on 18 July 2079. Given that there were 53 years remaining we calculated the premium to the landlord to extend the lease to be within £37,100 and £42,800 not including expenses.