Chances are that where you own a flat in Willerby you actually own a long leasehold interest over your property
It is generally accepted that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| 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. |
| 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. |
The lawyers that we work with undertake Willerby 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 conveyancer we work with provide it.
Caleb was the the leasehold proprietor of a 2 bedroom apartment in Willerby being marketed with a lease of just over fifty eight years left. Caleb on an informal basis approached his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Caleb to invoke his statutory right. Caleb procured expert advice and was able to make a more informed decision and handle with the matter and sell the property.
Mr and Mrs. Y Lambert was assigned a lease of a one bedroom flat in Willerby in July 2001. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Identical homes in Willerby with a long lease were in the region of £233,200. The mid-range amount of ground rent was £60 collected annually. The lease concluded on 12 November 2086. Considering the 61 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £22,800 and £26,400 exclusive of fees.
Last Autumn we were contacted by Mr and Mrs. F Roux , who was assigned a lease of a one bedroom apartment in Willerby in March 2011. The question was if we could approximate the premium could be for a 90 year extension to my lease. Comparable premises in Willerby with an extended lease were valued around £166,800. The average ground rent payable was £50 billed every twelve months. The lease lapsed in 2075. Having 50 years unexpired we calculated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 not including legals.