On the balance of probabilities where you own a flat in Minera you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 procure Minera 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 conveyancer we work with provide it.
Off the back of protracted correspondence with the freeholder of her one bedroom apartment in Minera, Rachael initiated the lease extension process as the 80 year deadline was quickly coming. The lease extension completed in March 2010. The freeholder’s charges were negotiated to approximately 450 GBP.
Dr G Johnson was assigned a lease of a garden flat in Minera in November 2001. The dilemma was if we could estimate the premium could be for a ninety year lease extension. Comparable residencies in Minera with 100 year plus lease were valued around £235,200. The average ground rent payable was £45 collected quarterly. The lease elapsed on 22 August 2091. Considering the 66 years outstanding we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.
Last Spring we were phoned by Mrs J Carter , who bought a purpose-built apartment in Minera in June 2004. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar homes in Minera with a long lease were worth £280,000. The mid-range ground rent payable was £55 invoiced every twelve months. The lease expired on 4 September 2102. Given that there were 77 years outstanding we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including legals.