On the balance of probabilities where you own a flat in Neston you actually own a long leasehold interest over your property
It is generally accepted that a residential leasehold with in excess of one hundred 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 residence will be worth the same as a freehold for decades to come.
| 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. |
| 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; |
| 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. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Neston,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 Neston valuers.
Subsequent to unsuccessful discussions with the freeholder of her purpose-built apartment in Neston, Jessica started the lease extension process just as her lease was coming close to the all-important eighty-year deadline. The legal work completed in February 2015. The freeholder’s fees were kept to an absolute minimum.
In 2012 we were contacted by Mrs U Petit who, having owned a one bedroom apartment in Neston in October 1998. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparable premises in Neston with an extended lease were worth £208,600. The mid-range ground rent payable was £60 billed monthly. The lease ran out in 2083. Considering the 57 years unexpired we estimated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 not including fees.
Ms A Torres completed a ground floor flat in Neston in February 2008. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable homes in Neston with a long lease were worth £200,000. The mid-range ground rent payable was £50 billed per annum. The lease termination date was in 2103. Having 77 years left we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.