On the balance of probabilities where you own a flat in Littleport you actually own a long leasehold interest over your property
Leasehold residencies in Littleport with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| 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. |
The conveyancing solicitors that we work with handle Littleport lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Trailing protracted negotiations with the landlord of her one bedroom apartment in Littleport, Molly commenced the lease extension process as the 80 year threshold was fast advancing. The transaction was finalised in February 2014. The freeholder’s costs were negotiated to below 600 pounds.
Last year we were called by Dr Hunter Rose , who bought a purpose-built apartment in Littleport in August 2004. The question was if we could estimate the price would be for a 90 year extension to my lease. Comparable flats in Littleport with a long lease were in the region of £280,000. The average ground rent payable was £45 invoiced monthly. The lease finished in 2096. Having 70 years unexpired we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus expenses.
Mr and Mrs. S Vincent took over the lease of a garden apartment in Littleport in June 1999. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Similar premises in Littleport with 100 year plus lease were worth £223,400. The mid-range amount of ground rent was £60 billed monthly. The lease expired on 14 September 2085. Taking into account 59 years left we estimated the premium to the landlord for the lease extension to be between £27,600 and £31,800 exclusive of expenses.