On the balance of probabilities if you own a flat in Montacute 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 equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with undertake Montacute 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.
Off the back of protracted discussions with the landlord of her one bedroom flat in Montacute, Jasmine commenced the lease extension process as the eighty year deadline was swiftly coming. The lease extension completed in March 2007. The freeholder’s fees were kept to an absolute minimum.
Mr and Mrs. G Bailey was assigned a lease of a basement flat in Montacute in June 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Similar residencies in Montacute with 100 year plus lease were worth £205,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease ended in 2104. Given that there were 79 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus fees.
Mr M Girard owned a one bedroom flat in Montacute in September 2009. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Similar homes in Montacute with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £65 invoiced monthly. The lease finished in 2093. Taking into account 68 years left we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including professional charges.