On the balance of probabilities where you own a flat in Longford you actually own a long leasehold interest over your property
Leasehold premises in Longford with more than 100 years left on the lease are often 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 upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The conveyancing solicitors that we work with undertake Longford 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 lawyer we work with provide it.
Off the back of lengthy discussions with the freeholder of her one bedroom flat in Longford, Isabelle commenced the lease extension process as the eighty year threshold was quickly nearing. The legal work completed in October 2005. The freeholder’s fees were restricted to approximately 600 GBP.
In 2009 we were approached by Mr and Mrs. C Davies who, having bought a ground floor flat in Longford in March 1996. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Comparable residencies in Longford with a long lease were in the region of £265,000. The average ground rent payable was £50 invoiced annually. The lease lapsed in 2098. Given that there were 73 years as a residual term we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.
An example of a Freehold Enfranchisement case for a Longford premises is 164 Nestles Avenue in October 2013. The tribunal agreed with the proposed price of £20,158 for the freehold and determined that that sum is the amount to be paid into court This case was in relation to 2 flats. The unexpired term as at the valuation date was 69 years.