Chances are that if you own a flat in Wargrave you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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; |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Retaining our service gives you enhanced control over the value of your Wargrave 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 are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Owen owned a conversion flat in Wargrave being sold with a lease of a few days over 72 years remaining. Owen informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Owen to exercise his statutory right. Owen procured expert advice and secured an acceptable deal without going to tribunal and sell the flat.
Mrs L Williams was assigned a lease of a studio flat in Wargrave in October 2004. The question was if we could shed any light on how much (approximately) premium would be to prolong the lease by an additional years. Similar homes in Wargrave with a long lease were in the region of £176,200. The average amount of ground rent was £65 billed yearly. The lease expired in 2082. Considering the 56 years remaining we calculated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 not including legals.
Dr C François owned a ground floor apartment in Wargrave in July 2004. The question was if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Comparative residencies in Wargrave with a long lease were valued around £242,600. The average amount of ground rent was £45 invoiced annually. The lease finished on 20 February 2093. Given that there were 67 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of expenses.