On the balance of probabilities where you own a flat in Lancaster you actually own a long leasehold interest over your property
It is generally considered that a property with over 100 years remaining is worth roughly the equivalent 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 decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Lancaster can be a difficult process. We recommend you get guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 Lancaster lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Alex owned a studio apartment in Lancaster on the market with a lease of a little over sixty years unexpired. Alex informally spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 annually. No ground rent would be due on a lease extension were Alex to exercise his statutory right. Alex procured expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2010 we were phoned by Ms K Scott who, having bought a studio flat in Lancaster in March 2006. The question was if we could approximate the premium would likely be for a 90 year lease extension. Identical properties in Lancaster with 100 year plus lease were valued around £198,800. The mid-range amount of ground rent was £55 collected annually. The lease concluded on 8 September 2081. Having 55 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 not including professional charges.
Last Autumn we were e-mailed by Mr D Ricardo , who took over the lease of a newly refurbished flat in Lancaster in November 2007. The question was if we could approximate the premium could be to prolong the lease by an additional years. Identical properties in Lancaster with an extended lease were worth £300,000. The average ground rent payable was £50 collected annually. The lease ran out in 2101. Given that there were 75 years unexpired we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including professional charges.