Chances are that where you own a flat in Miskin you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| 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 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; |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
The conveyancing solicitors that we work with procure Miskin 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.
David was the the leasehold owner of a high value apartment in Miskin on the market with a lease of a little over sixty years unexpired. David on an informal basis approached his freeholder a well known London-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were David to invoke his statutory right. David procured expert legal guidance and secured an acceptable deal informally and sell the flat.
In 2009 we were called by Dr Mollie Kelly who, having bought a purpose-built apartment in Miskin in June 2006. The question was if we could approximate the price would be for a 90 year extension to my lease. Identical properties in Miskin with a long lease were worth £240,600. The mid-range ground rent payable was £65 invoiced quarterly. The lease terminated in 2088. Given that there were 62 years left we calculated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 plus legals.
Mr H Dupont was assigned a lease of a newly refurbished flat in Miskin in November 2004. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Similar flats in Miskin with 100 year plus lease were valued about £174,200. The average ground rent payable was £55 collected annually. The lease came to a finish on 23 July 2077. Having 51 years unexpired we approximated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of expenses.