On the balance of probabilities where you own a flat in Killay you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years in the future.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Lease extensions in Killay can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer 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 procuring Killay lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of lengthy negotiations with the freeholder of her ground floor apartment in Killay, Lydia commenced the lease extension process just as the lease was approaching the all-important 80-year deadline. The lease extension completed in April 2010. The landlord’s costs were negotiated to about 500 pounds.
In 2013 we were approached by Mr and Mrs. I White who, having purchased a purpose-built flat in Killay in September 2003. The question was if we could approximate the premium could be to prolong the lease by a further 90 years. Comparative properties in Killay with a long lease were in the region of £205,000. The average ground rent payable was £50 billed quarterly. The lease lapsed on 1 April 2104. Having 79 years remaining we estimated the premium to the freeholder for the lease extension to be within £7,600 and £8,800 not including professional charges.
Mr and Mrs. I Taylor took over the lease of a studio apartment in Killay in September 2001. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Comparable properties in Killay with an extended lease were valued about £270,000. The mid-range amount of ground rent was £65 invoiced yearly. The lease ran out in 2093. Considering the 68 years remaining we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of legals.