Chances are that if you own a flat in Newton Ferrers you actually own a long leasehold interest over your property
Leasehold properties in Newton Ferrers with more than 100 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 home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| 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; |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Newton Ferrers,the lease extension solicitors 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 Newton Ferrers valuers.
Callum was the the leasehold proprietor of a 2 bedroom flat in Newton Ferrers being marketed with a lease of a little over fifty eight years outstanding. Callum informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Callum to exercise his statutory right. Callum procured expert legal guidance and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
In 2010 we were contacted by Mr and Mrs. F Miller who, having bought a ground floor flat in Newton Ferrers in July 2009. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative residencies in Newton Ferrers with an extended lease were valued around £227,800. The average ground rent payable was £45 billed annually. The lease expired in 2091. Given that there were 65 years remaining we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including legals.
Ms Freya Collins bought a one bedroom apartment in Newton Ferrers in September 2003. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative properties in Newton Ferrers with an extended lease were worth £275,000. The mid-range ground rent payable was £55 collected monthly. The lease expired on 8 September 2102. Having 76 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.