Unfortunately that a Liskeard residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Liskeard property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If the number of years remaining dips under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Liskeard will be able to extend under the legislation; however a conveyancer will be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the process.
Leasehold properties in Liskeard with in excess of 100 years outstanding 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 circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Lease extensions in Liskeard can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Liskeard lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing protracted negotiations with the freeholder of her leasehold flat in Liskeard, Morgan initiated the lease extension process as the 80 year threshold was swiftly nearing. The legal work was concluded in January 2013. The landlord’s fees were negotiated to a tad over 500 pounds.
Dr T Wilson acquired a ground floor apartment in Liskeard in April 2005. We are asked if we could approximate the premium would likely be to prolong the lease by ninety years. Comparative residencies in Liskeard with 100 year plus lease were in the region of £198,400. The mid-range ground rent payable was £65 invoiced per annum. The lease ended on 7 January 2085. Given that there were 59 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of expenses.
Mr and Mrs. V Ramírez completed a purpose-built apartment in Liskeard in August 2003. The question was if we could estimate the premium would be for a 90 year extension to my lease. Similar flats in Liskeard with 100 year plus lease were valued around £255,000. The mid-range amount of ground rent was £50 billed annually. The lease termination date was in 2096. Given that there were 70 years unexpired we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.