On the balance of probabilities where you own a flat in Great Shelford you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Great Shelford,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Great Shelford valuers.
In 2014 Zachary, started to get near to the 80-year threshold with the lease on his garden apartment in Great Shelford. Having bought his home two decades ago, the lease term was of no interest. Luckily, it dawned on him that he needed to take action soon on a lease extension. Zachary extended the lease just in the nick of time last June. Zachary and the landlord subsequently agreed on the final figure of £5,500 . If the lease had slipped below eighty years, the amount would have increased by a minimum £1,125.
In 2011 we were contacted by Ms Mia Jackson who, having acquired a garden apartment in Great Shelford in June 2005. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Comparable premises in Great Shelford with 100 year plus lease were worth £242,600. The average amount of ground rent was £45 invoiced quarterly. The lease finished in 2093. Taking into account 67 years outstanding we estimated the premium to the landlord for the lease extension to be between £11,400 and £13,200 not including fees.
Dr Cameron Watson was assigned a lease of a recently refurbished flat in Great Shelford in January 2004. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical flats in Great Shelford with a long lease were worth £280,000. The mid-range amount of ground rent was £55 collected quarterly. The lease ran out on 4 February 2104. Having 78 years remaining we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus costs.