Chances are that if you own a flat in Great Harwood you actually own a long leasehold interest over your property
Leasehold premises in Great Harwood with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Engaging our service gives you increased control over the value of your Great Harwood leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jayden owned a conversion apartment in Great Harwood being sold with a lease of a few days over fifty eight years outstanding. Jayden informally spoke with his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jayden to exercise his statutory right. Jayden procured expert advice and secured an acceptable deal without resorting to tribunal and sell the property.
Last Autumn we were called by Dr I Mason , who moved into a garden apartment in Great Harwood in March 1999. The dilemma was if we could shed any light on how much (roughly) premium could be to extend the lease by a further 90 years. Comparable residencies in Great Harwood with 100 year plus lease were valued about £173,800. The average amount of ground rent was £65 invoiced per annum. The lease ended in 2080. Considering the 55 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 plus fees.
Last Christmas we were contacted by Mr and Mrs. N Sánchez , who took over the lease of a studio apartment in Great Harwood in March 1995. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical residencies in Great Harwood with a long lease were valued around £235,200. The mid-range amount of ground rent was £45 billed per annum. The lease termination date was in 2091. Taking into account 66 years remaining we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including fees.