On the balance of probabilities where you own a flat in Iver you actually own a long leasehold interest over your property
Leasehold residencies in Iver with in excess of one hundred years left 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | 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. |
The lawyers that we work with procure Iver 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.
During the course of the last few months Jamie, started to get close to the 80-year threshold with the lease on his one bedroom apartment in Iver. Having purchased his flat 19 years ago, the unexpired term was of minimal interest. Fortunately, he recognised he needed to take steps soon on Extending the lease. Jamie arranged for a lease extension just in the nick of time in June. Jamie and the landlord who owned the flat above subsequently agreed on an amount of £5,000 . If he had missed the deadline, the price would have become more exhorbitant by at least £1,000.
Last May we were e-mailed by Mr and Mrs. L Sharif , who bought a basement apartment in Iver in February 2000. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparative residencies in Iver with a long lease were in the region of £245,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease elapsed on 10 June 2092. Considering the 68 years outstanding we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.
An example of a Freehold Enfranchisement matter before the tribunal for a Iver residence is 164 Nestles Avenue in October 2013. The tribunal agreed with the proposed price of £20,158 for the freehold and determined that that sum is the amount to be paid into court This case was in relation to 2 flats. The unexpired term as at the valuation date was 69 years.