On the balance of probabilities if you own a flat in Woodborough you actually own a long leasehold interest over your property
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Lloyds TSB Scotland | 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. |
Regardless of whether you are a tenant or a freeholder in Woodborough,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Woodborough valuers.
Leo owned a studio apartment in Woodborough being marketed with a lease of a few days over sixty years unexpired. Leo informally contacted his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Leo to exercise his statutory right. Leo obtained expert advice and secured satisfactory resolution informally and sell the property.
Mr and Mrs. C Evans completed a ground floor apartment in Woodborough in February 1998. The question was if we could approximate the price could be for a 90 year lease extension. Comparative flats in Woodborough with an extended lease were valued around £260,200. The average ground rent payable was £65 invoiced quarterly. The lease ended in 2091. Taking into account 66 years left we approximated the premium to the landlord for the lease extension to be within £16,200 and £18,600 exclusive of expenses.
Last Spring we were called by Mr and Mrs. V Hall , who moved into a basement apartment in Woodborough in July 2006. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Comparative homes in Woodborough with an extended lease were in the region of £198,800. The mid-range ground rent payable was £55 collected quarterly. The lease finished in 2080. Considering the 55 years left we approximated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 plus legals.