Inkberrow leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Inkberrow tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Inkberrow you must check if your lease has between 70 and ninety years left. There are compelling reasons why a Inkberrow leaseholder with a lease having around 80 years left should take steps to ensure that a lease extension is effected without delay
Leasehold properties in Inkberrow with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you increased control over the value of your Inkberrow leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Oliver was the the leasehold proprietor of a conversion apartment in Inkberrow being marketed with a lease of fraction over 59 years unexpired. Oliver informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be due on a lease extension were Oliver to exercise his statutory right. Oliver obtained expert advice and was able to make an informed decision and deal with the matter and sell the property.
Ms Isabelle Lefèvre owned a newly refurbished flat in Inkberrow in August 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparable residencies in Inkberrow with an extended lease were in the region of £232,800. The mid-range amount of ground rent was £45 billed every twelve months. The lease came to a finish in 2091. Considering the 65 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.
Mr and Mrs. S González took over the lease of a ground floor apartment in Inkberrow in September 2012. The dilemma was if we could estimate the price would be for a 90 year lease extension. Comparative properties in Inkberrow with an extended lease were worth £275,000. The mid-range ground rent payable was £55 billed yearly. The lease ran out on 10 September 2102. Having 76 years as a residual term we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.