On the balance of probabilities where you own a flat in Rainford you actually own a long leasehold interest over your property
Leasehold properties in Rainford with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Rainford,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Rainford valuers.
In recent months Thomas, started to get close to the 80-year threshold with the lease on his ground floor apartment in Rainford. In buying his home 19 years ago, the lease term was of little relevance. As luck would have it, he noticed he would imminently be paying an escalated premium for Extending the lease. Thomas extended the lease just under the wire last March. Thomas and the freeholder via the management company eventually agreed on the final figure of £5,000 . If the lease had dipped below 80 years, the price would have gone up by at least £1,000.
Dr C Adams moved into a purpose-built apartment in Rainford in April 2006. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Comparative premises in Rainford with an extended lease were valued about £285,000. The mid-range ground rent payable was £55 invoiced yearly. The lease ran out in 2106. Considering the 80 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus legals.
Last year we were e-mailed by Ms Aimee Anderson , who owned a one bedroom apartment in Rainford in February 2000. We are asked if we could approximate the price would be to extend the lease by an additional years. Comparable properties in Rainford with an extended lease were in the region of £200,800. The average ground rent payable was £65 invoiced annually. The lease finished on 2 September 2086. Taking into account 60 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 plus expenses.