On the balance of probabilities where you own a flat in Great Missenden you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Great Missenden,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Great Missenden valuers.
Subsequent to protracted discussions with the freeholder of her garden apartment in Great Missenden, Megan initiated the lease extension process just as her lease was coming close to the all-important 80-year deadline. The lease extension completed in March 2007. The freeholder’s fees were negotiated to slightly above 500 GBP.
Last month we were called by Mr and Mrs. J Flores , who purchased a purpose-built flat in Great Missenden in November 2006. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Similar flats in Great Missenden with a long lease were valued around £270,000. The average ground rent payable was £55 billed every twelve months. The lease finished in 2101. Given that there were 75 years unexpired we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus legals.
Last Christmas we were contacted by Mr Leo Pérez , who owned a recently refurbished apartment in Great Missenden in March 2010. We are asked if we could estimate the price would be to prolong the lease by ninety years. Similar homes in Great Missenden with 100 year plus lease were valued about £168,800. The average ground rent payable was £60 invoiced monthly. The lease came to a finish in 2081. Having 55 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 not including costs.