On the balance of probabilities where you own a flat in Trentham you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 Trentham leasehold, as your property will be more valuable and marketable in respect of lease length should you want 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.
Sebastian owned a studio apartment in Trentham being marketed with a lease of a little over 72 years outstanding. Sebastian informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Sebastian to invoke his statutory right. Sebastian obtained expert legal guidance and secured an acceptable deal informally and sell the property.
In 2011 we were e-mailed by Mr and Mrs. V Taylor who, having took over the lease of a newly refurbished flat in Trentham in November 2011. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Similar properties in Trentham with 100 year plus lease were valued about £206,200. The mid-range ground rent payable was £60 collected annually. The lease lapsed on 22 November 2082. Considering the 56 years left we estimated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 plus costs.
Last month we were called by Dr Alexander Lewis , who was assigned a lease of a garden flat in Trentham in February 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Comparable homes in Trentham with an extended lease were valued around £300,000. The average amount of ground rent was £50 collected quarterly. The lease came to a finish in 2102. Given that there were 76 years unexpired we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including expenses.