On the balance of probabilities if you own a flat in Templecombe you actually own a long leasehold interest over your property
Leasehold premises in Templecombe with in excess of one hundred years left 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 home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Templecombe leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After unsuccessful negotiations with the landlord of her studio flat in Templecombe, Kayleigh initiated the lease extension process as the 80 year deadline was quickly approaching. The lease extension completed in March 2006. The landlord’s costs were negotiated to approximately 550 pounds.
In 2014 we were phoned by Dr Amy Alexander who, having bought a one bedroom apartment in Templecombe in October 2002. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Comparable properties in Templecombe with an extended lease were in the region of £295,000. The mid-range ground rent payable was £45 invoiced monthly. The lease finished on 15 November 2100. Given that there were 74 years left we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.
Mr Henry Martínez owned a ground floor flat in Templecombe in February 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Identical flats in Templecombe with 100 year plus lease were valued around £243,000. The average amount of ground rent was £65 invoiced per annum. The lease ended on 23 March 2089. Taking into account 63 years outstanding we calculated the premium to the landlord to extend the lease to be within £20,000 and £23,000 not including costs.