Chances are that if you own a flat in Turvey you actually own a long leasehold interest over your property
Leasehold residencies in Turvey with over 100 years left on the lease are often 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 buying the freehold 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. |
| 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; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Turvey can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Turvey lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Matthew was the the leasehold owner of a 2 bedroom flat in Turvey being marketed with a lease of just over fifty eight years outstanding. Matthew on an informal basis contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. No ground rent would be due on a lease extension were Matthew to invoke his statutory right. Matthew procured expert advice and secured satisfactory deal informally and readily saleable.
In 2011 we were contacted by Mr and Mrs. U Mason who, having moved into a purpose-built flat in Turvey in March 1995. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Comparative residencies in Turvey with an extended lease were worth £200,800. The average amount of ground rent was £65 collected quarterly. The lease ran out in 2086. Taking into account 60 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £20,900 and £24,200 not including costs.
Last Christmas we were called by Ms D Alexander , who moved into a one bedroom flat in Turvey in March 1997. The question was if we could estimate the premium would be to extend the lease by a further 90 years. Comparative homes in Turvey with an extended lease were valued about £255,000. The average amount of ground rent was £50 invoiced monthly. The lease ran out on 9 July 2097. Considering the 71 years left we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.