On the balance of probabilities if you own a flat in St Anns you actually own a long leasehold interest over your property
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years ahead.
| 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 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 St Anns leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Austin was the the leasehold owner of a high value flat in St Anns on the market with a lease of just over fifty eight years remaining. Austin informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Austin to invoke his statutory right. Austin procured expert advice and secured an acceptable deal without resorting to tribunal and readily saleable.
Last April we were contacted by Ms Amelia Evans , who took over the lease of a one bedroom apartment in St Anns in February 2002. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Comparable flats in St Anns with an extended lease were in the region of £193,400. The mid-range ground rent payable was £65 invoiced every twelve months. The lease came to a finish on 13 May 2084. Having 59 years remaining we estimated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 not including professional charges.
In 2010 we were phoned by Mr and Mrs. E Bonnet who, having acquired a newly refurbished flat in St Anns in June 2012. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Similar premises in St Anns with an extended lease were valued about £250,000. The average amount of ground rent was £50 collected annually. The lease elapsed in 2095. Having 70 years remaining we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.