Chances are that if you own a flat in Killay you actually own a long leasehold interest over your property
Leasehold properties in Killay with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The conveyancing solicitors that we work with undertake Killay lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Alex was the the leasehold proprietor of a 2 bedroom apartment in Killay being sold with a lease of a little over sixty years remaining. Alex informally contacted his freeholder being a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Alex to exercise his statutory right. Alex obtained expert advice and secured an acceptable resolution without going to tribunal and sell the property.
In 2009 we were contacted by Mrs Emily Ward who, having owned a first floor apartment in Killay in September 2011. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparable premises in Killay with 100 year plus lease were valued around £196,400. The mid-range ground rent payable was £55 collected per annum. The lease concluded on 20 September 2079. Considering the 54 years outstanding we calculated the premium to the freeholder for the lease extension to be within £34,200 and £39,600 not including fees.
Last Spring we were contacted by Ms D Bennett , who was assigned a lease of a garden flat in Killay in March 2005. The dilemma was if we could estimate the premium could be to extend the lease by an additional years. Identical premises in Killay with a long lease were in the region of £295,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease lapsed on 27 January 2100. Taking into account 75 years outstanding we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of legals.