The market value of a leasehold property in Lisson Grove depends on how many years the lease has remaining. If it is close to or fewer than 80 years you should foresee difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is ideal to start the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be finalised well before the 80 year threshold. Leasehold Reform legislation enables Lisson Grove qualifying lessees to an additional term of ninety years in addition to the remaining term, at a nominal rent (no ground rent). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle 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 conveyancing solicitor we work with provide it.
Following unsuccessful correspondence with the landlord of her studio apartment in Lisson Grove, Georgina started the lease extension process as the 80 year mark was rapidly approaching. The lease extension was finalised in June 2006. The landlord’s fees were kept to an absolute minimum.
Dr T Mercier moved into a one bedroom apartment in Lisson Grove in June 2011. The question was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Similar properties in Lisson Grove with an extended lease were worth £252,800. The average amount of ground rent was £65 billed annually. The lease finished in 2090. Considering the 65 years outstanding we approximated the premium to the landlord for the lease extension to be within £18,100 and £20,800 plus fees.
An example of a Lease Extension matter before the tribunal for a Lisson Grove premises 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 affected 2 flats. The unexpired residue of the current lease was 24.02 years.