Liss leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Liss tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Liss you should see if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Liss with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a landlord in Liss,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Liss valuers.
Nathan was the the leasehold proprietor of a conversion apartment in Liss on the market with a lease of just over sixty years left. Nathan informally approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Nathan to invoke his statutory right. Nathan obtained expert advice and secured an acceptable deal informally and sell the property.
Last month we were e-mailed by Ms F Williams , who was assigned a lease of a garden apartment in Liss in February 2003. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Similar premises in Liss with 100 year plus lease were valued about £205,000. The mid-range amount of ground rent was £50 billed quarterly. The lease came to a finish in 2103. Considering the 78 years remaining we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.
In 2013 we were called by Ms U Fournier who, having completed a basement apartment in Liss in March 1995. We are asked if we could approximate the price could be for a ninety year lease extension. Comparative residencies in Liss with an extended lease were in the region of £267,600. The mid-range amount of ground rent was £65 billed every twelve months. The lease lapsed in 2092. Considering the 67 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £14,300 and £16,400 exclusive of expenses.