The re-sale value of a leasehold property in Littleport depends on how long the lease has left to run. If it is close to or less than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended before buying. Ideally one should start the process of extending the lease is when the lease still has 82 years to run so that formalities can be concluded prior to the 80 year cut off point. Leasehold Reform legislation enables Littleport qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a further term of ninety years. The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Littleport,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Littleport valuers.
Ethan owned a high value apartment in Littleport on the market with a lease of a few days over fifty eight years outstanding. Ethan informally approached his landlord being a well known local-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 subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Ethan to invoke his statutory right. Ethan procured expert advice and secured satisfactory resolution informally and ending up with a market value flat.
In 2011 we were phoned by Mr and Mrs. F Laurent who, having acquired a basement flat in Littleport in November 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Similar residencies in Littleport with 100 year plus lease were in the region of £267,600. The mid-range amount of ground rent was £65 billed monthly. The lease ran out in 2092. Having 67 years remaining we approximated the premium to the freeholder to extend the lease to be within £14,300 and £16,400 not including expenses.
Last April we were called by Mr K Morris , who was assigned a lease of a studio apartment in Littleport in April 1997. The question was if we could approximate the premium could be to extend the lease by a further 90 years. Similar homes in Littleport with an extended lease were in the region of £201,200. The mid-range amount of ground rent was £55 billed per annum. The lease ended in 2081. Taking into account 56 years remaining we estimated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 not including legals.