Midsomer Norton residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a period of years.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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 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; |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Midsomer Norton,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Midsomer Norton valuers.
Sam owned a high value flat in Midsomer Norton being sold with a lease of a little over 59 years outstanding. Sam on an informal basis approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 annually. No ground rent would be payable on a lease extension were Sam to exercise his statutory right. Sam procured expert legal guidance and secured an acceptable deal without going to tribunal and readily saleable.
In 2014 we were called by Mr Ryan Phillips who, having was assigned a lease of a first floor apartment in Midsomer Norton in March 2007. The question was if we could estimate the premium would likely be to prolong the lease by 90 years. Identical homes in Midsomer Norton with 100 year plus lease were in the region of £208,600. The average amount of ground rent was £60 billed monthly. The lease elapsed on 1 February 2082. Considering the 57 years unexpired we approximated the premium to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of legals.
Last Christmas we were approach by Dr Abigail Miller , who owned a studio apartment in Midsomer Norton in April 1995. We are asked if we could estimate the price would likely be to extend the lease by ninety years. Comparable properties in Midsomer Norton with an extended lease were in the region of £200,000. The mid-range ground rent payable was £50 billed monthly. The lease elapsed in 2102. Having 77 years unexpired we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus professional charges.