Chances are that where you own a flat in Deeside you actually own a long leasehold interest over your property
It is conventional wisdom that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start 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 landlord in Deeside,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Deeside valuers.
Last Christmas Ryan, came very close to the eighty-year threshold with the lease on his basement apartment in Deeside. Having purchased his home 18 years previously, the length of the lease was of no significance. Fortunately, he became aware that he needed to take action soon on a lease extension. Ryan arranged for a lease extension at the eleventh hour last January. Ryan and the freeholder eventually settled on the final figure of £6,000 . If he had missed the deadline, the sum would have escalated by a minimum £1,150.
In 2014 we were approached by Mr Henry Walker who, having bought a one bedroom flat in Deeside in October 1995. The question was if we could approximate the premium would likely be to extend the lease by an additional years. Comparative homes in Deeside with a long lease were worth £205,000. The mid-range amount of ground rent was £50 billed annually. The lease ended in 2105. Having 79 years outstanding we estimated the premium to the freeholder for the lease extension to be within £7,600 and £8,800 exclusive of expenses.
Last year we were approach by Dr Charlotte David , who owned a first floor flat in Deeside in January 2004. The question was if we could estimate the price would likely be to extend the lease by an additional years. Similar homes in Deeside with an extended lease were in the region of £275,000. The mid-range amount of ground rent was £65 collected per annum. The lease ran out in 2094. Given that there were 68 years left we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of costs.