On the balance of probabilities if you own a flat in Markyate you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Markyate,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Markyate valuers.
Twenty four months ago Milo, came seriously near to the eighty-year mark with the lease on his purpose- built apartment in Markyate. Having bought his flat two decades ago, the lease term was of minimal interest. Thankfully, it dawned on him that he needed to take action soon on Extending the lease. Milo arranged for a lease extension just ahead of time in May. Milo and the freeholder eventually settled on the final figure of £5,000 . If the lease had slipped below 80 years, the amount would have gone up by at least £1,100.
In 2014 we were approached by Mr and Mrs. C Bernard who, having completed a newly refurbished flat in Markyate in October 2006. The dilemma was if we could approximate the premium would likely be to extend the lease by a further 90 years. Identical properties in Markyate with 100 year plus lease were worth £290,000. The average amount of ground rent was £45 billed every twelve months. The lease end date was in 2098. Given that there were 73 years left we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus fees.
Last March we were phoned by Mrs D Patel , who purchased a purpose-built apartment in Markyate in April 2009. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical residencies in Markyate with a long lease were in the region of £240,600. The mid-range ground rent payable was £60 billed per annum. The lease came to a finish on 6 July 2087. Taking into account 62 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of fees.