Chances are that if you own a flat in Peterborough you actually own a long leasehold interest over your property
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Peterborough,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Peterborough valuers.
Jason owned a conversion flat in Peterborough on the market with a lease of a few days over 72 years outstanding. Jason on an informal basis spoke with his landlord a well known London-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Jason to exercise his statutory right. Jason procured expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
In 2014 we were phoned by Mr and Mrs. A Flores who, having completed a purpose-built flat in Peterborough in October 1999. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparative homes in Peterborough with an extended lease were worth £275,000. The average ground rent payable was £55 billed per annum. The lease expired on 15 October 2101. Taking into account 76 years as a residual term we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.
Dr Y Rodríguez moved into a one bedroom apartment in Peterborough in July 1998. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable premises in Peterborough with 100 year plus lease were worth £176,200. The average ground rent payable was £65 billed monthly. The lease came to a finish on 26 July 2081. Having 56 years left we approximated the premium to the landlord for the lease extension to be within £29,500 and £34,000 plus fees.