On the balance of probabilities where you own a flat in Sleaford you actually own a long leasehold interest over your property
Leasehold residencies in Sleaford with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Regardless of whether you are a tenant or a freeholder in Sleaford,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Sleaford valuers.
Twenty four months ago Sam, came seriously near to the eighty-year threshold with the lease on his two bedroom flat in Sleaford. Having purchased his property 18 years ago, the lease term was of little importance. As luck would have it, he recognised he needed to take steps soon on a lease extension. Sam extended the lease just ahead of time last March. Sam and the freeholder via the management company eventually agreed on an amount of £5,500 . If the lease had fallen below eighty years, the sum would have increased by a minimum £875.
Mr and Mrs. U Flores completed a studio apartment in Sleaford in November 2001. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Comparable homes in Sleaford with an extended lease were worth £223,400. The mid-range amount of ground rent was £60 billed yearly. The lease concluded on 25 August 2085. Taking into account 59 years unexpired we approximated the compensation to the landlord for the lease extension to be between £27,600 and £31,800 plus professional charges.
Mr Callum David completed a garden flat in Sleaford in April 2001. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Identical homes in Sleaford with 100 year plus lease were in the region of £205,000. The mid-range ground rent payable was £50 collected monthly. The lease concluded in 2105. Taking into account 79 years unexpired we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of fees.