On the balance of probabilities if you own a flat in St Margarets you actually own a long leasehold interest over your property
Leasehold premises in St Margarets with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better control over the value of your St Margarets 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 have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Evan was the the leasehold proprietor of a high value apartment in St Margarets being marketed with a lease of a little over 59 years unexpired. Evan informally contacted his freeholder being a well known local-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Evan to exercise his statutory right. Evan procured expert advice and secured an acceptable resolution without going to tribunal and readily saleable.
Ms R Lefebvre bought a studio flat in St Margarets in November 2002. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical residencies in St Margarets with a long lease were in the region of £265,200. The mid-range ground rent payable was £65 collected every twelve months. The lease elapsed in 2092. Considering the 66 years remaining we estimated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 not including costs.
An example of a Lease Extension case for a St Margarets flat is Ground Floor Flat 91 Bath Road in May 2009. in a case where the freeholder could not be traced, the Brentford County Court ordered that the Lease be surrendered in return for the grant of a new lease of the Premises at a premium determined by the Leasehold Valuation Tribunal. The tribunal concluded that the price payable by the Applicant for the new lease of the premises be £15,900 This case affected 1 flat. The unexpired residue of the current lease was 60.45 years.