There is no doubt about it a leasehold property in Liskeard is a wasting asset as a result of the shortening lease. Where the residual term has, more than 99 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should extend the lease without delay. Most flat owners in Liskeard will qualify for this right; that being said a lawyer should be able to confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
Engaging our service gives you better control over the value of your Liskeard leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted discussions with the landlord of her leasehold flat in Liskeard, Paige started the lease extension process just as her lease was coming close to the all-important eighty-year deadline. The transaction completed in August 2007. The freeholder’s costs were kept to an absolute minimum.
In 2010 we were phoned by Ms Catherine Leroy who, having owned a purpose-built flat in Liskeard in March 2004. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Comparative properties in Liskeard with a long lease were worth £225,400. The average ground rent payable was £45 billed per annum. The lease ran out in 2089. Taking into account 64 years left we approximated the premium to the landlord to extend the lease to be within £15,200 and £17,600 not including legals.
Last Summer we were e-mailed by Dr Olivia Howard , who purchased a purpose-built apartment in Liskeard in April 1997. We are asked if we could estimate the price would be to extend the lease by ninety years. Identical premises in Liskeard with an extended lease were valued about £270,000. The average amount of ground rent was £55 collected monthly. The lease expired on 1 September 2100. Taking into account 75 years remaining we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.