Unfortunately that a Liskeard residential lease is a wasting asset. As the lease term reduces 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 Liskeard property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than 80 years - otherwise a higher amount will be due. Most leasehold owners in Liskeard will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the process.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure Liskeard lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Isaac owned a high value apartment in Liskeard being marketed with a lease of a little over 59 years outstanding. Isaac informally contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 per annum. No ground rent would be payable on a lease extension were Isaac to invoke his statutory right. Isaac procured expert advice and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Last Christmas we were contacted by Dr Amber Bell , who owned a one bedroom flat in Liskeard in June 2010. The dilemma was if we could approximate the premium could be to extend the lease by a further 90 years. Identical homes in Liskeard with a long lease were worth £200,800. The mid-range amount of ground rent was £65 invoiced yearly. The lease expired in 2085. Considering the 60 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 exclusive of professional charges.
Last Autumn we were e-mailed by Mr and Mrs. G Howard , who purchased a one bedroom apartment in Liskeard in January 2009. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Identical residencies in Liskeard with 100 year plus lease were valued about £260,000. The average ground rent payable was £50 collected monthly. The lease concluded on 14 February 2096. Given that there were 71 years remaining we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.