On the balance of probabilities if you own a flat in Sandiacre you actually own a long leasehold interest over your property
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for decades to come.
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Using our service gives you enhanced control over the value of your Sandiacre leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful discussions with the freeholder of her ground floor flat in Sandiacre, Kayleigh commenced the lease extension process just as her lease was nearing the critical eighty-year threshold. The lease extension was finalised in April 2011. The freeholder’s fees were negotiated to a tad over 700 GBP.
Ms Isobel James was assigned a lease of a garden flat in Sandiacre in July 1999. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Comparable flats in Sandiacre with an extended lease were valued about £252,800. The mid-range amount of ground rent was £65 collected yearly. The lease elapsed on 14 June 2090. Given that there were 65 years unexpired we approximated the premium to the landlord to extend the lease to be within £17,100 and £19,800 plus legals.
Ms C Pérez completed a first floor flat in Sandiacre in October 2005. The dilemma was if we could approximate the premium would be to prolong the lease by an additional years. Similar properties in Sandiacre with 100 year plus lease were valued about £191,400. The average amount of ground rent was £55 invoiced every twelve months. The lease end date was on 5 September 2079. Given that there were 54 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £34,200 and £39,600 not including costs.