On the balance of probabilities where you own a flat in Lanchester you actually own a long leasehold interest over your property
Leasehold residencies in Lanchester with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Lanchester,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Lanchester valuers.
Dylan was the the leasehold owner of a conversion apartment in Lanchester being sold with a lease of fraction over 59 years outstanding. Dylan on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Dylan to invoke his statutory right. Dylan obtained expert advice and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Last Spring we were e-mailed by Mr and Mrs. S Pérez , who bought a ground floor apartment in Lanchester in April 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Comparative residencies in Lanchester with a long lease were in the region of £193,400. The average ground rent payable was £65 collected per annum. The lease lapsed in 2081. Having 59 years remaining we approximated the premium to the landlord to extend the lease to be within £21,900 and £25,200 plus expenses.
Last Winter we were called by Mr and Mrs. O Díaz , who was assigned a lease of a garden flat in Lanchester in April 2008. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Comparable homes in Lanchester with a long lease were worth £250,000. The average amount of ground rent was £50 invoiced per annum. The lease finished on 3 May 2092. Given that there were 70 years left we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.