Chances are that if you own a flat in Rothbury you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Halifax | Minimum 70 years from the date 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 |
Regardless of whether you are a tenant or a landlord in Rothbury,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 in-depth market knowledge and the close ties they enjoy with Rothbury valuers.
Charlie owned a studio apartment in Rothbury on the market with a lease of fraction over 61 years remaining. Charlie informally spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Charlie to exercise his statutory right. Charlie obtained expert advice and secured satisfactory deal without going to tribunal and ending up with a market value flat.
Last Winter we were called by Mr and Mrs. P King , who owned a one bedroom apartment in Rothbury in November 2012. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical properties in Rothbury with an extended lease were worth £280,000. The average ground rent payable was £45 invoiced monthly. The lease ended on 18 August 2095. Considering the 70 years left we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of costs.
Mr and Mrs. W Stewart moved into a garden flat in Rothbury in June 2007. The dilemma was if we could approximate the price would likely be to extend the lease by 90 years. Comparative homes in Rothbury with a long lease were valued about £223,400. The average ground rent payable was £60 billed every twelve months. The lease finished on 15 July 2084. Taking into account 59 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £27,600 and £31,800 plus professional charges.