Chances are that where you own a flat in Templecombe you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
Irrespective of whether you are a tenant or a landlord in Templecombe,the lease extension solicitors 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 Templecombe valuers.
During the course of the last few months Alexander, started to get close to the eighty-year mark with the lease on his two bedroom flat in Templecombe. Having bought his home two decades ago, the lease term was of little importance. by good luck, he became aware that he would imminently be paying way over the odds for a lease extension. Alexander arranged for a lease extension at the eleventh hour last April. Alexander and the freeholder via the managing agents eventually settled on a premium of £5,500 . If he not met the deadline, the premium would have increased by at least £875.
In 2013 we were phoned by Mr G Ali who, having bought a ground floor flat in Templecombe in October 1999. We are asked if we could estimate the price could be to extend the lease by an additional years. Comparative homes in Templecombe with 100 year plus lease were in the region of £184,000. The mid-range ground rent payable was £55 billed monthly. The lease terminated in 2078. Having 53 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus fees.
Last Christmas we were called by Dr G Morel , who owned a ground floor flat in Templecombe in October 2010. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Identical flats in Templecombe with a long lease were valued about £290,000. The average ground rent payable was £45 collected annually. The lease lapsed on 15 January 2098. Considering the 73 years unexpired we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.