Chances are that where you own a flat in Newton Longville you actually own a long leasehold interest over your property
It is conventional wisdom that a property 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 residence will be equivalent in value to a freehold for many years in the future.
| 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; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Engaging our service gives you better control over the value of your Newton Longville leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Charlie was the the leasehold owner of a studio flat in Newton Longville being marketed with a lease of a few days over 61 years outstanding. Charlie on an informal basis contacted his landlord a well known local-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Charlie to exercise his statutory right. Charlie procured expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the flat.
Last year we were approach by Mr R Moreau , who acquired a newly refurbished apartment in Newton Longville in October 2012. We are asked if we could approximate the price would likely be to prolong the lease by an additional years. Identical flats in Newton Longville with an extended lease were worth £210,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease came to a finish in 2105. Having 80 years outstanding we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including expenses.
Mrs Laura Ali completed a garden flat in Newton Longville in August 2000. The question was if we could estimate the price would be for a 90 year extension to my lease. Identical premises in Newton Longville with a long lease were worth £275,000. The average amount of ground rent was £45 invoiced yearly. The lease ran out in 2094. Given that there were 69 years outstanding we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus expenses.