Chances are that if you own a flat in Trelogan you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| 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; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure Trelogan 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 conveyancing solicitor we work with provide it.
Following protracted negotiations with the landlord of her studio apartment in Trelogan, Mia started the lease extension process as the 80 year mark was rapidly advancing. The legal work was concluded in November 2009. The freeholder’s costs were negotiated to about 650 pounds.
In 2013 we were called by Ms Samantha Bell who, having completed a basement flat in Trelogan in June 1996. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by an additional years. Comparable properties in Trelogan with 100 year plus lease were worth £186,000. The average amount of ground rent was £65 collected annually. The lease end date was on 15 April 2083. Having 58 years unexpired we estimated the compensation to the landlord for the lease extension to be within £24,700 and £28,600 not including fees.
In 2013 we were e-mailed by Ms Nicole Torres who, having took over the lease of a ground floor apartment in Trelogan in June 2003. The question was if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparative properties in Trelogan with 100 year plus lease were worth £250,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease came to a finish in 2093. Given that there were 68 years unexpired we estimated the premium to the freeholder for the lease extension to be within £10,500 and £12,000 not including costs.