For anyone whose Liskeard home is held on a long lease, the message is clear – if you ignore the situation, your property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Lease extensions in Liskeard can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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 in-depth market knowledge procuring Liskeard lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Kai, came dangerously close to the 80-year threshold with the lease on his ground floor flat in Liskeard. In buying his property 18 years ago, the length of the lease was of no interest. Luckily, he recognised he needed to take action soon on Extending the lease. Kai extended the lease just ahead of time last May. Kai and the freeholder via the management company in the end settled on the final figure of £5,000 . If the lease had slid lower than eighty years, the price would have increased by a minimum £850.
In 2014 we were contacted by Mr and Mrs. B Khan who, having bought a first floor apartment in Liskeard in August 2007. The question was if we could approximate the premium would be to extend the lease by an additional years. Similar properties in Liskeard with an extended lease were worth £215,600. The average amount of ground rent was £45 collected yearly. The lease finished on 15 August 2088. Taking into account 62 years unexpired we estimated the premium to the landlord for the lease extension to be within £18,100 and £20,800 plus expenses.
Mr Oscar Lee moved into a one bedroom apartment in Liskeard in August 2002. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Similar homes in Liskeard with a long lease were valued about £265,000. The average ground rent payable was £50 billed annually. The lease expired in 2099. Having 73 years unexpired we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.