On the balance of probabilities if you own a flat in New Covent Garden you actually own a long leasehold interest over your property
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 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 |
|---|---|
| Bank of Scotland | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in New Covent Garden,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with New Covent Garden valuers.
Last October Kyle, came precariously near to the eighty-year mark with the lease on his two bedroom flat in New Covent Garden. Having purchased his home two decades ago, the length of the lease was of little interest. Thankfully, he realised he would imminently be paying an escalated premium for a lease extension. Kyle arranged for a lease extension at the eleventh hour last January. Kyle and the freeholder via the managing agents ultimately agreed on sum of £5,000 . If the lease had slid below 80 years, the amount would have increased by a minimum £1,125.
Dr Ryan Cox owned a studio apartment in New Covent Garden in October 1995. 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 homes in New Covent Garden with 100 year plus lease were in the region of £264,000. The average amount of ground rent was £60 billed every twelve months. The lease lapsed in 2079. Taking into account 53 years left we calculated the compensation to the freeholder to extend the lease to be between £37,100 and £42,800 not including legals.
In 2013 we were called by Ms T Thomas who, having acquired a first floor flat in New Covent Garden in March 2002. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Identical residencies in New Covent Garden with 100 year plus lease were in the region of £225,400. The average amount of ground rent was £45 billed annually. The lease ran out in 2090. Considering the 64 years outstanding we approximated the premium to the landlord to extend the lease to be within £15,200 and £17,600 not including expenses.