Chances are that where you own a flat in Llanishen you actually own a long leasehold interest over your property
It is generally considered that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
Irrespective of whether you are a tenant or a freeholder in Llanishen,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Llanishen valuers.
Half a year ago Riley, started to get close to the 80-year threshold with the lease on his two bedroom flat in Llanishen. In buying his flat two decades ago, the length of the lease was of no interest. Fortunately, he recognised he would soon be paying an escalated premium for Extending the lease. Riley was able to extend his lease just ahead of time in August. Riley and the landlord who owned the flat above in the end settled on the final figure of £5,500 . If the lease had slid to less than 80 years, the premium would have increased by a minimum £1,025.
Last Summer we were e-mailed by Mr and Mrs. I Nguyen , who acquired a one bedroom apartment in Llanishen in July 2003. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Identical homes in Llanishen with an extended lease were in the region of £227,800. The mid-range amount of ground rent was £45 billed monthly. The lease finished in 2091. Considering the 65 years remaining we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus fees.
Mr and Mrs. Y Brown completed a studio apartment in Llanishen in April 2004. We are asked if we could approximate the price would be to extend the lease by ninety years. Comparable flats in Llanishen with 100 year plus lease were worth £270,000. The mid-range amount of ground rent was £55 collected yearly. The lease finished in 2102. Taking into account 76 years remaining we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.