On the balance of probabilities if you own a flat in Lanchester you actually own a long leasehold interest over your property
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Engaging our service gives you increased control over the value of your Lanchester 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.
Last year Hugo, came seriously near to the 80-year threshold with the lease on his first floor flat in Lanchester. Having bought his home 18 years previously, the lease term was of minimal relevance. Luckily, he noticed he would imminently be paying way over the odds for a lease extension. Hugo extended the lease just under the wire in June. Hugo and the landlord who owned the flat above eventually agreed on the final figure of £6,000 . If he not met the deadline, the premium would have escalated by a minimum £975.
In 2010 we were contacted by Dr Aiden Lefèvre who, having completed a one bedroom flat in Lanchester in June 2007. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparable premises in Lanchester with 100 year plus lease were worth £166,400. The average ground rent payable was £60 billed quarterly. The lease terminated in 2080. Given that there were 54 years outstanding we estimated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of expenses.
Mrs Imogen Sharif was assigned a lease of a purpose-built apartment in Lanchester in May 2012. We are asked if we could approximate the premium would be to extend the lease by 90 years. Identical homes in Lanchester with 100 year plus lease were worth £227,800. The average ground rent payable was £45 billed every twelve months. The lease came to a finish on 11 June 2091. Given that there were 65 years outstanding we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including costs.