On the balance of probabilities where you own a flat in Page Green you actually own a long leasehold interest over your property
It is generally accepted that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Retaining our service gives you increased control over the value of your Page Green leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last October Reuben, came perilously near to the 80-year mark with the lease on his studio apartment in Page Green. Having purchased his flat two decades ago, the lease term was of little relevance. Fortunately, he became aware that he would soon be paying an inflated amount for Extending the lease. Reuben was able to extend his lease at the eleventh hour in August. Reuben and the landlord who owned the flat above eventually agreed on a premium of £5,500 . If the lease had dropped to less than 80 years, the premium would have become more exhorbitant by at least £1,150.
Mr and Mrs. C Ward completed a purpose-built apartment in Page Green in June 2004. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Comparative flats in Page Green with an extended lease were in the region of £300,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease came to a finish on 4 February 2100. Having 75 years remaining we estimated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus fees.
An example of a Freehold Enfranchisement decision for a Page Green property is 22 Wakefield Road in January 2012. Following a vesting order Clerkenwell and Shoreditch County Court under section 26 of the Leasehold Reform,Housing and Urban Development Act 1993 on 9th May 2011 the Tribunal decided that the price that the Applicant for the freehold interest should pay is £17,400 This case related to 2 flats. The number of years remaining on the existing lease(s) was 74.13 years.