Rednal residential property held on a long lease is a wasting asset as the leaseholder only owns the property for a set term.
Leasehold properties in Rednal with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges justify 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; |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Rednal,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Rednal valuers.
Following unsuccessful discussions with the landlord of her two bedroom flat in Rednal, Natalie commenced the lease extension process as the eighty year mark was quickly nearing. The transaction was finalised in September 2014. The freeholder’s costs were negotiated to slightly above 600 GBP.
Last Spring we were e-mailed by Mr and Mrs. B Davies , who owned a one bedroom apartment in Rednal in November 2001. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Identical flats in Rednal with a long lease were in the region of £290,000. The average amount of ground rent was £45 invoiced monthly. The lease finished on 5 March 2099. Having 74 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of expenses.
In 2009 we were approached by Mr Zachary Murphy who, having took over the lease of a basement flat in Rednal in January 2001. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by ninety years. Comparable residencies in Rednal with 100 year plus lease were in the region of £243,000. The mid-range amount of ground rent was £65 invoiced quarterly. The lease finished in 2088. Taking into account 63 years remaining we estimated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 not including fees.