Leicester leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Leicester tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Leicester you would be well advised to investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before 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. |
Regardless of whether you are a tenant or a freeholder in Leicester,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Leicester valuers.
Following unsuccessful negotiations with the landlord of her basement apartment in Leicester, Isabella initiated the lease extension process just as her lease was coming close to the crucial 80-year deadline. The legal work completed in April 2011. The freeholder’s fees were kept to an absolute minimum.
In 2014 we were contacted by Mr Logan Stewart who, having moved into a first floor apartment in Leicester in March 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Comparative properties in Leicester with an extended lease were valued about £233,200. The average amount of ground rent was £60 billed monthly. The lease expired in 2086. Considering the 61 years left we estimated the compensation to the freeholder to extend the lease to be between £22,800 and £26,400 plus expenses.
Mr and Mrs. D Roberts owned a ground floor apartment in Leicester in March 2012. The question was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by an additional years. Comparable residencies in Leicester with a long lease were in the region of £171,800. The mid-range amount of ground rent was £55 billed quarterly. The lease elapsed in 2075. Having 50 years left we approximated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 exclusive of legals.