On the balance of probabilities where you own a flat in Goole you actually own a long leasehold interest over your property
Leasehold residencies in Goole with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| 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. |
| 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. |
Retaining our service will provide you increased control over the value of your Goole leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Harry owned a high value apartment in Goole being sold with a lease of just over 61 years remaining. Harry on an informal basis contacted his landlord a well known local-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 on the basis of a rise in the rent to £100 annually. No ground rent would be payable on a lease extension were Harry to exercise his statutory right. Harry procured expert legal guidance and secured an acceptable deal informally and sell the flat.
In 2012 we were approached by Ms W Alexander who, having acquired a studio flat in Goole in October 2009. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparative flats in Goole with a long lease were valued about £254,200. The average ground rent payable was £60 collected quarterly. The lease ended in 2076. Considering the 51 years unexpired we estimated the compensation to the landlord to extend the lease to be within £43,700 and £50,600 exclusive of professional charges.
In 2013 we were e-mailed by Mr Ali Anderson who, having purchased a one bedroom apartment in Goole in March 2012. The dilemma was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Identical premises in Goole with 100 year plus lease were valued around £210,600. The average ground rent payable was £45 billed per annum. The lease expired on 26 November 2087. Given that there were 62 years remaining we approximated the premium to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of costs.