On the balance of probabilities where you own a flat in Howden you actually own a long leasehold interest over your property
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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:
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Engaging our service gives you better control over the value of your Howden leasehold, as your property will be more valuable and saleable in relation to the 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.
Subsequent to lengthy correspondence with the landlord of her studio flat in Howden, Elizabeth commenced the lease extension process just as her lease was approaching the critical eighty-year deadline. The legal work was concluded in October 2007. The landlord’s costs were restricted to a tad over 650 pounds.
Last year we were phoned by Dr Amber Martin , who took over the lease of a first floor flat in Howden in June 2003. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Identical homes in Howden with 100 year plus lease were in the region of £200,800. The average amount of ground rent was £65 invoiced annually. The lease ran out in 2086. Taking into account 60 years unexpired we estimated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 not including legals.
In 2012 we were contacted by Mr and Mrs. E Garcia who, having completed a ground floor apartment in Howden in June 2010. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar premises in Howden with 100 year plus lease were in the region of £260,000. The mid-range ground rent payable was £50 collected annually. The lease came to a finish in 2097. Taking into account 71 years remaining we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.