When it comes to long leasehold property in Liskeard, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly when there are less than 80 years remaining. Residents in Liskeard with a lease approaching 81 years left should seriously think of extending it without delay. When a lease has less than 80 years left, under the relevant Act the landlord can calculate and demand a greater premium, assessed on a technical computation, known as “marriage value” which is due.
Leasehold residencies in Liskeard with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Retaining our service will provide you better control over the value of your Liskeard leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful negotiations with the freeholder of her first floor flat in Liskeard, Millie started the lease extension process just as her lease was nearing the critical 80-year deadline. The legal work was finalised in November 2006. The landlord’s costs were restricted to slightly above 550 pounds.
Mr and Mrs. T Williams took over the lease of a basement flat in Liskeard in August 2011. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar premises in Liskeard with 100 year plus lease were in the region of £280,000. The average amount of ground rent was £55 billed per annum. The lease came to a finish in 2104. Having 78 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of expenses.
Last Autumn we were approach by Ms Natasha Kelly , who acquired a first floor apartment in Liskeard in January 2005. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Comparative flats in Liskeard with 100 year plus lease were valued about £191,000. The mid-range ground rent payable was £65 billed per annum. The lease terminated on 20 October 2084. Taking into account 58 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 plus professional charges.