On the balance of probabilities if you own a flat in Lindfield you actually own a long leasehold interest over your property
Leasehold properties in Lindfield with more than 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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; |
| Halifax | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Using our service gives you better control over the value of your Lindfield leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful negotiations with the freeholder of her garden apartment in Lindfield, Mia started the lease extension process as the eighty year threshold was rapidly approaching. The transaction completed in July 2014. The landlord’s fees were kept to an absolute minimum.
In 2010 we were phoned by Mr and Mrs. A Howard who, having acquired a one bedroom flat in Lindfield in September 2011. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Comparative premises in Lindfield with a long lease were in the region of £250,000. The average ground rent payable was £50 billed per annum. The lease expiry date was in 2095. Given that there were 69 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.
Ms V Moore was assigned a lease of a purpose-built apartment in Lindfield in October 2011. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Similar residencies in Lindfield with an extended lease were worth £285,000. The mid-range ground rent payable was £55 collected annually. The lease ran out on 11 April 2106. Having 80 years remaining we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of costs.