Chances are that if you own a flat in Slade Green you actually own a long leasehold interest over your property
Leasehold residencies in Slade Green with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with handle Slade Green lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
16 months ago Dexter, started to get close to the 80-year threshold with the lease on his basement apartment in Slade Green. Having bought his home two decades ago, the unexpired term was of no concern. Fortunately, he realised he needed to take steps soon on Extending the lease. Dexter arranged for a lease extension just under the wire last August. Dexter and the landlord eventually agreed on sum of £6,000 . If he had missed the deadline, the price would have escalated by at least £1,025.
Mr Freddie Laurent bought a garden flat in Slade Green in January 2001. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Identical properties in Slade Green with 100 year plus lease were valued around £275,000. The average ground rent payable was £45 invoiced annually. The lease elapsed on 23 April 2095. Having 69 years remaining we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including fees.
An example of a Lease Extension matter before the tribunal for a Slade Green flat 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 was in relation to 13 flats. The remaining number of years on the lease was 76 years.