For anyone whose Lechlade property is held on a long lease, the message is clear – if no remedial action is taken, the property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to extend the lease.
Leasehold properties in Lechlade with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you enhanced control over the value of your Lechlade leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Nathaniel was the the leasehold proprietor of a high value flat in Lechlade on the market with a lease of fraction over 59 years outstanding. Nathaniel on an informal basis contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant 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. Ordinarily, ground rent would not be due on a lease extension were Nathaniel to invoke his statutory right. Nathaniel procured expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Mr and Mrs. D Mason purchased a newly refurbished apartment in Lechlade in November 1997. The dilemma was if we could estimate the price would be for a 90 year lease extension. Comparable homes in Lechlade with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £55 collected monthly. The lease expired on 3 March 2104. Having 79 years left we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.
Last Summer we were approach by Mr and Mrs. Y Sharif , who acquired a basement apartment in Lechlade in August 1999. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by an additional years. Identical premises in Lechlade with a long lease were valued about £193,400. The average ground rent payable was £65 invoiced yearly. The lease ended in 2084. Having 59 years unexpired we calculated the premium to the landlord for the lease extension to be between £21,900 and £25,200 plus expenses.