On the balance of probabilities where you own a flat in Heddon On The Wall you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you enhanced control over the value of your Heddon On The Wall leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Toby, came perilously close to the eighty-year mark with the lease on his basement flat in Heddon On The Wall. In buying his property two decades ago, the length of the lease was of no significance. Luckily, he realised he would soon be paying an inflated amount for Extending the lease. Toby arranged for a lease extension at the eleventh hour last January. Toby and the landlord eventually settled on the final figure of £5,000 . If he not met the deadline, the amount would have escalated by a minimum £925.
Mr and Mrs. G Vincent moved into a recently refurbished flat in Heddon On The Wall in October 2012. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Identical flats in Heddon On The Wall with 100 year plus lease were valued around £227,800. The mid-range ground rent payable was £45 billed per annum. The lease ran out in 2091. Considering the 65 years unexpired we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including professional charges.
Dr Jack Rose owned a garden apartment in Heddon On The Wall in July 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Identical homes in Heddon On The Wall with a long lease were worth £275,000. The average ground rent payable was £55 billed monthly. The lease terminated on 18 February 2102. Given that there were 76 years as a residual term we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.