Chances are that where you own a flat in Lake District you actually own a long leasehold interest over your property
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for many years ahead.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Yorkshire 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. |
Lease extensions in Lake District can be a difficult process. We recommend you procure professional help from a lawyer and surveyor 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 Lake District lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Reuben owned a studio flat in Lake District on the market with a lease of a little over 59 years remaining. Reuben informally contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Reuben to invoke his statutory right. Reuben obtained expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
In 2013 we were approached by Mr and Mrs. V Davis who, having acquired a ground floor apartment in Lake District in July 2010. The dilemma was if we could approximate the premium could be to prolong the lease by a further 90 years. Comparable residencies in Lake District with a long lease were valued around £295,000. The average ground rent payable was £45 billed monthly. The lease terminated in 2099. Having 74 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.
Mr Kian Adams took over the lease of a first floor flat in Lake District in January 2011. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparable flats in Lake District with an extended lease were worth £243,000. The average ground rent payable was £65 invoiced annually. The lease elapsed in 2088. Given that there were 63 years left we approximated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 not including costs.