It’s an underpublicised certainty that a Lisson Grove residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Lisson Grove property market.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher premium will be payable. The majority of flat owners in Lisson Grove will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
Leasehold premises in Lisson Grove with over one hundred years unexpired 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 home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| Halifax | Minimum 70 years from the date 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. |
| 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. |
The conveyancers that we work with procure Lisson Grove lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last Winter Jude, started to get close to the 80-year threshold with the lease on his one bedroom flat in Lisson Grove. In buying his property two decades ago, the length of the lease was of no relevance. As luck would have it, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Jude extended the lease just under the wire in August. Jude and the landlord ultimately settled on a premium of £5,000 . If he failed to meet the deadline, the figure would have gone up by a minimum £1,100.
Mr and Mrs. S David was assigned a lease of a one bedroom apartment in Lisson Grove in April 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Similar properties in Lisson Grove with an extended lease were in the region of £235,600. The mid-range ground rent payable was £60 billed annually. The lease terminated on 18 September 2087. Considering the 62 years left we approximated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 not including professional charges.
An example of a Lease Extension case for a Lisson Grove residence is Flats 37 & 39 88/90 Portland Place in December 2010. The Tribunal determined that the premium payable for the lease extensions in respect of these two flats is as follows:- For Flat 37, the sum of £385,230.00 For Flat 39, the sum of £436,780.00 This case related to 2 flats. The number of years remaining on the existing lease(s) was 24.02 years.