On the balance of probabilities if you own a flat in Peasedown St John you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Using our service gives you enhanced control over the value of your Peasedown St John leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
18 months ago Jasper, came dangerously near to the eighty-year mark with the lease on his garden apartment in Peasedown St John. Having purchased his home 19 years ago, the lease term was of minimal concern. Thankfully, he recognised he would soon be paying an escalated premium for Extending the lease. Jasper arranged for a lease extension at the eleventh hour in April. Jasper and the landlord who owned the flat above eventually agreed on the final figure of £5,500 . If the lease had descended lower than 80 years, the amount would have increased by at least £1,025.
In 2009 we were phoned by Ms M Davis who, having moved into a one bedroom flat in Peasedown St John in October 2009. The question was if we could estimate the premium could be for a ninety year extension to my lease. Comparative premises in Peasedown St John with an extended lease were worth £260,000. The mid-range ground rent payable was £50 collected yearly. The lease expiry date was in 2098. Considering the 72 years outstanding we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.
Last Winter we were called by Dr Harrison Ward , who acquired a first floor flat in Peasedown St John in April 2001. The dilemma was if we could approximate the premium would be to extend the lease by a further 90 years. Identical premises in Peasedown St John with a long lease were in the region of £256,600. The average ground rent payable was £60 collected quarterly. The lease ran out in 2078. Taking into account 52 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £39,000 and £45,000 plus expenses.