On the balance of probabilities if you own a flat in Margate you actually own a long leasehold interest over your property
Leasehold properties in Margate with in excess of 100 years outstanding 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 circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| 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; |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Margate 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 conveyancing solicitor we work with provide it.
Off the back of protracted discussions with the landlord of her studio flat in Margate, Phoebe initiated the lease extension process just as her lease was approaching the critical eighty-year mark. The legal work was finalised in May 2010. The freeholder’s costs were kept to an absolute minimum.
Last Autumn we were called by Mr Ethan Edwards , who was assigned a lease of a studio flat in Margate in October 2012. We are asked if we could estimate the premium would be to extend the lease by a further 90 years. Identical premises in Margate with an extended lease were in the region of £254,200. The mid-range ground rent payable was £60 collected monthly. The lease end date was on 3 September 2077. Given that there were 51 years remaining we approximated the premium to the freeholder for the lease extension to be between £43,700 and £50,600 plus expenses.
Dr Courtney Rodríguez took over the lease of a ground floor flat in Margate in August 2004. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Identical premises in Margate with an extended lease were worth £210,600. The mid-range ground rent payable was £45 billed annually. The lease finished in 2088. Considering the 62 years as a residual term we estimated the premium to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of costs.