On the balance of probabilities if you own a flat in Smithfield you actually own a long leasehold interest over your property
Leasehold premises in Smithfield with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
|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.|
|Halifax||Minimum 70 years from the date 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
|Royal Bank of Scotland||Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.|
|Virgin||85 years at the time of completion. If it's less, we require it to be extended on or before completion.|
Irrespective of whether you are a tenant or a freeholder in Smithfield,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Smithfield valuers.
Evan owned a conversion apartment in Smithfield on the market with a lease of fraction over sixty years remaining. Evan informally approached his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Evan to exercise his statutory right. Evan procured expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last Winter we were e-mailed by Ms F Allen , who moved into a basement apartment in Smithfield in August 1996. We are asked if we could estimate the price would likely be to extend the lease by a further 90 years. Similar properties in Smithfield with a long lease were valued about £233,200. The average amount of ground rent was £60 invoiced annually. The lease concluded on 5 April 2083. Given that there were 61 years as a residual term we approximated the premium to the landlord for the lease extension to be between £22,800 and £26,400 exclusive of professional charges.
Ms B Rose moved into a purpose-built flat in Smithfield in September 2009. The dilemma was if we could estimate the premium would be for a 90 year extension to my lease. Comparable premises in Smithfield with 100 year plus lease were worth £171,800. The mid-range ground rent payable was £55 collected per annum. The lease ended on 4 September 2072. Having 50 years left we estimated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 not including fees.