On the balance of probabilities where you own a flat in Quedgeley you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 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 |
|---|---|
| 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; |
| 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. |
| Coventry Building Society | 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. |
| 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. |
The conveyancing solicitors that we work with undertake Quedgeley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In 2014 Owen, came very close to the 80-year threshold with the lease on his basement apartment in Quedgeley. Having purchased his flat 19 years ago, the length of the lease was of little relevance. Luckily, he noticed he would soon be paying an escalated premium for a lease extension. Owen arranged for a lease extension just under the wire in March. Owen and the freeholder in the end settled on an amount of £6,000 . If the lease had slid lower than 80 years, the sum would have escalated by a minimum £1,000.
Last Summer we were e-mailed by Mr and Mrs. K Scott , who was assigned a lease of a studio flat in Quedgeley in August 1996. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparable properties in Quedgeley with a long lease were in the region of £203,200. The mid-range amount of ground rent was £65 collected quarterly. The lease elapsed on 8 May 2086. Taking into account 61 years left we estimated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 exclusive of legals.
Mr M Pérez moved into a ground floor apartment in Quedgeley in June 2011. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Identical homes in Quedgeley with a long lease were valued around £260,000. The average amount of ground rent was £50 billed quarterly. The lease end date was in 2097. Taking into account 72 years outstanding we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of legals.