It’s an underpublicised truth that a Lanchester residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Lanchester property market.Once your lease gets to 85ish years, you need to start considering a lease extension. If lease term drops under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Lanchester will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold premises in Lanchester with more than one hundred years outstanding 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 premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Lanchester can be a difficult process. We recommend you get guidance 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 in-depth market knowledge dealing with Lanchester lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Leo was the the leasehold proprietor of a conversion apartment in Lanchester being sold with a lease of fraction over 61 years outstanding. Leo on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Leo to exercise his statutory right. Leo obtained expert legal guidance and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Mr and Mrs. E Thomas was assigned a lease of a one bedroom flat in Lanchester in October 1997. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by 90 years. Comparative residencies in Lanchester with 100 year plus lease were valued about £290,000. The average amount of ground rent was £60 billed every twelve months. The lease ended on 28 October 2105. Given that there were 80 years outstanding we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including fees.
Dr Oscar Morgan purchased a studio flat in Lanchester in June 2003. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Comparative homes in Lanchester with an extended lease were valued around £200,800. The mid-range amount of ground rent was £65 invoiced every twelve months. The lease finished on 4 April 2085. Considering the 60 years as a residual term we calculated the premium to the landlord for the lease extension to be within £20,900 and £24,200 not including expenses.