On the balance of probabilities where you own a flat in Middlesbrough you actually own a long leasehold interest over your property
Leasehold premises in Middlesbrough with over 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 property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you better control over the value of your Middlesbrough leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After protracted discussions with the landlord of her two bedroom apartment in Middlesbrough, Samantha commenced the lease extension process just as her lease was coming close to the all-important 80-year deadline. The legal work was finalised in July 2008. The landlord’s charges were kept to an absolute minimum.
Last Summer we were approach by Dr V Miller , who bought a ground floor flat in Middlesbrough in April 2012. We are asked if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Identical residencies in Middlesbrough with 100 year plus lease were worth £260,200. The average ground rent payable was £65 billed annually. The lease terminated in 2092. Given that there were 66 years left we calculated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 plus fees.
Last Winter we were approach by Mr David Hernández , who acquired a purpose-built flat in Middlesbrough in November 1998. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by 90 years. Similar flats in Middlesbrough with 100 year plus lease were in the region of £198,800. The average ground rent payable was £55 invoiced every twelve months. The lease expired on 11 February 2081. Given that there were 55 years remaining we estimated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 exclusive of costs.