Chances are that where you own a flat in Willingham 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 approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you increased control over the value of your Willingham leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Leon, came dangerously near to the 80-year threshold with the lease on his studio apartment in Willingham. In buying his home 18 years previously, the length of the lease was of little relevance. by good luck, he became aware that he needed to take action soon on a lease extension. Leon was able to extend his lease just in the nick of time last April. Leon and the landlord who owned the flat above eventually settled on a premium of £6,000 . If the lease had descended lower than 80 years, the price would have gone up by a minimum £900.
Last month we were called by Mr and Mrs. Y Bernard , who was assigned a lease of a basement flat in Willingham in November 2012. We are asked if we could estimate the price would likely be for a ninety year lease extension. Identical homes in Willingham with a long lease were worth £267,600. The average amount of ground rent was £65 collected annually. The lease end date was on 28 November 2092. Taking into account 67 years remaining we estimated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 exclusive of fees.
Mr Jacob Pérez acquired a ground floor apartment in Willingham in July 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Similar homes in Willingham with a long lease were in the region of £206,200. The mid-range ground rent payable was £55 billed every twelve months. The lease lapsed on 11 February 2081. Given that there were 56 years as a residual term we approximated the premium to the landlord to extend the lease to be within £31,400 and £36,200 plus professional charges.