On the balance of probabilities where you own a flat in Magor you actually own a long leasehold interest over your property
Leasehold properties in Magor with more than 100 years remaining 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 premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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 will provide you increased control over the value of your Magor leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted correspondence with the landlord of her purpose-built apartment in Magor, Abbie initiated the lease extension process as the 80 year deadline was quickly approaching. The transaction completed in August 2007. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. V López moved into a studio flat in Magor in June 2005. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by a further 90 years. Comparative residencies in Magor with a long lease were worth £173,800. The mid-range ground rent payable was £65 billed monthly. The lease came to a finish in 2080. Having 55 years left we estimated the premium to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of expenses.
Ms R Robinson owned a one bedroom flat in Magor in April 2007. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar homes in Magor with a long lease were worth £235,200. The average amount of ground rent was £45 billed quarterly. The lease terminated in 2091. Having 66 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of costs.