With a long leasehold property in Littleborough, you are actually buying a right to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than eighty years left. Anyone in Littleborough with a lease nearing 81 years unexpired should seriously consider extending it sooner rather than later. Once a lease has less than eighty years outstanding, under the current legislation the freeholder is entitled to calculate and levy a greater premium, based on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| Lloyds TSB Scotland | 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. |
Lease extensions in Littleborough can be a difficult process. We recommend you secure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Littleborough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jack was the the leasehold proprietor of a high value flat in Littleborough being marketed with a lease of a little over 61 years unexpired. Jack on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jack to exercise his statutory right. Jack obtained expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Last March we were contacted by Mr and Mrs. T Flores , who was assigned a lease of a garden apartment in Littleborough in January 2000. The question was if we could approximate the price would be to prolong the lease by ninety years. Comparable residencies in Littleborough with a long lease were valued around £280,000. The average amount of ground rent was £55 invoiced per annum. The lease concluded on 2 April 2104. Considering the 78 years left we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including expenses.
Last month we were phoned by Dr N González , who moved into a newly refurbished apartment in Littleborough in January 1996. The dilemma was if we could approximate the price would likely be to prolong the lease by an additional years. Comparable homes in Littleborough with 100 year plus lease were valued about £191,000. The mid-range ground rent payable was £65 invoiced yearly. The lease came to a finish on 6 August 2084. Taking into account 58 years remaining we calculated the premium to the landlord to extend the lease to be between £23,800 and £27,400 not including costs.