On the balance of probabilities where you own a flat in Rufford you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 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 |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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 |
| 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. |
Retaining our service will provide you enhanced control over the value of your Rufford leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Finley was the the leasehold owner of a conversion flat in Rufford being marketed with a lease of a little over 72 years unexpired. Finley informally contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 per annum. No ground rent would be due on a lease extension were Finley to invoke his statutory right. Finley procured expert legal guidance and secured satisfactory resolution without going to tribunal and sell the flat.
In 2010 we were e-mailed by Dr Emma Nelson who, having moved into a first floor flat in Rufford in March 2005. The dilemma was if we could approximate the price would likely be for a ninety year lease extension. Similar flats in Rufford with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £45 billed per annum. The lease ended in 2097. Taking into account 72 years remaining we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including legals.
Last month we were called by Dr Jasper Khan , who was assigned a lease of a garden flat in Rufford in October 2003. The dilemma was if we could estimate the price would be to extend the lease by a further 90 years. Identical properties in Rufford with an extended lease were valued about £233,200. The mid-range ground rent payable was £60 collected annually. The lease came to a finish on 16 May 2086. Given that there were 61 years unexpired we estimated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 exclusive of professional charges.