Chances are that if you own a flat in Ingleby Barwick you actually own a long leasehold interest over your property
It is generally accepted that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| 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; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Ingleby Barwick can be a difficult process. We recommend you secure guidance from a lawyer and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Ingleby Barwick lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Finn owned a conversion flat in Ingleby Barwick being marketed with a lease of fraction over 72 years remaining. Finn on an informal basis spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Finn to invoke his statutory right. Finn procured expert advice and was able to make an informed decision and deal with the matter and sell the flat.
In 2011 we were e-mailed by Mrs Jasmine Lefèvre who, having bought a one bedroom flat in Ingleby Barwick in September 1996. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Similar properties in Ingleby Barwick with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £55 invoiced monthly. The lease expired in 2103. Given that there were 77 years outstanding we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus professional charges.
Mr Ali Bertrand purchased a garden apartment in Ingleby Barwick in June 2005. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Comparative premises in Ingleby Barwick with 100 year plus lease were valued about £183,600. The average amount of ground rent was £65 collected every twelve months. The lease expired on 20 August 2083. Considering the 57 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 plus legals.