On the balance of probabilities where you own a flat in Taverham you actually own a long leasehold interest over your property
Leasehold properties in Taverham with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value 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 maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Coventry Building Society | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure Taverham 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 conveyancing solicitor we work with provide it.
Off the back of lengthy discussions with the landlord of her purpose-built apartment in Taverham, Paige initiated the lease extension process as the 80 year threshold was quickly coming. The legal work completed in March 2009. The landlord’s costs were kept to an absolute minimum.
Last Winter we were phoned by Mr and Mrs. T Ali , who moved into a garden apartment in Taverham in June 2011. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Similar flats in Taverham with an extended lease were valued about £264,000. The mid-range ground rent payable was £60 invoiced monthly. The lease finished in 2079. Taking into account 53 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £37,100 and £42,800 exclusive of expenses.
Last March we were phoned by Mr and Mrs. I Morgan , who acquired a ground floor flat in Taverham in September 2011. The question was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparative residencies in Taverham with 100 year plus lease were worth £220,400. The mid-range ground rent payable was £45 collected yearly. The lease terminated on 20 July 2090. Having 64 years outstanding we calculated the compensation to the landlord for the lease extension to be within £16,200 and £18,600 plus fees.