Chances are that if you own a flat in Slade Green you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Slade Green,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Slade Green valuers.
Oscar was the the leasehold owner of a 2 bedroom apartment in Slade Green on the market with a lease of a little over 59 years unexpired. Oscar informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Oscar to invoke his statutory right. Oscar obtained expert legal guidance and secured satisfactory resolution without going to tribunal and sell the flat.
In 2010 we were contacted by Mr and Mrs. N White who, having was assigned a lease of a one bedroom flat in Slade Green in March 2004. We are asked if we could estimate the price could be to extend the lease by ninety years. Comparable residencies in Slade Green with 100 year plus lease were valued about £275,000. The mid-range ground rent payable was £65 billed per annum. The lease finished in 2094. Considering the 68 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including costs.
An example of a Lease Extension matter before the tribunal for a Slade Green property is Various @ Colombus Square in January 2012. the Tribunal calculated the premiums to be paid for new leases for each of the flats in Mariners Walk to be £3822 and the premium to be paid for the new lease of 2 Knights Court to be £4439. This case affected 13 flats. The unexpired lease term was 76 years.