Chances are that if you own a flat in Glenfield you actually own a long leasehold interest over your property
Leasehold residencies in Glenfield with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Glenfield,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Glenfield valuers.
Daniel owned a 2 bedroom apartment in Glenfield being marketed with a lease of a little over 61 years unexpired. Daniel informally approached his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 per annum. No ground rent would be payable on a lease extension were Daniel to invoke his statutory right. Daniel procured expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the property.
Last Autumn we were approach by Mr and Mrs. W Ali , who took over the lease of a recently refurbished apartment in Glenfield in May 2005. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Identical residencies in Glenfield with a long lease were valued about £285,000. The average ground rent payable was £45 collected quarterly. The lease terminated on 23 June 2097. Given that there were 71 years left we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of fees.
Dr Sophia Michel purchased a studio flat in Glenfield in May 1997. The question was if we could approximate the premium could be to extend the lease by a further 90 years. Similar homes in Glenfield with an extended lease were in the region of £225,800. The mid-range amount of ground rent was £60 billed annually. The lease ran out on 10 June 2086. Considering the 60 years remaining we approximated the compensation to the freeholder for the lease extension to be between £24,700 and £28,600 exclusive of fees.