The nearer a residential lease in Lechlade nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, beyond 125 years to run then this decrease may be fractional that being said there will become a stage when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Most flat owners in Lechlade will qualify for this right; nevertheless a conveyancer should be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Lechlade with in excess of one hundred years remaining on the lease are sometimes referred to as ‘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 purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| 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; |
| 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. |
| Halifax | Minimum 70 years from the date 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 increased control over the value of your Lechlade leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted discussions with the freeholder of her basement flat in Lechlade, Laura started the lease extension process just as her lease was approaching the critical 80-year deadline. The legal work was finalised in February 2012. The landlord’s fees were kept to an absolute minimum.
Last Spring we were contacted by Mr Jacob Dupont , who was assigned a lease of a ground floor apartment in Lechlade in November 2011. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by ninety years. Identical residencies in Lechlade with an extended lease were worth £193,400. The average amount of ground rent was £65 collected quarterly. The lease came to a finish in 2083. Taking into account 59 years as a residual term we approximated the premium to the landlord for the lease extension to be within £21,900 and £25,200 not including fees.
In 2014 we were contacted by Mr and Mrs. C Lee who, having moved into a ground floor flat in Lechlade in January 2012. The question was if we could approximate the premium would likely be to prolong the lease by an additional years. Comparative premises in Lechlade with an extended lease were worth £255,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease elapsed on 19 September 2094. Taking into account 70 years remaining we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.