Long Itchington 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. Legislation has been in place for sometime now which entitles qualifying Long Itchington residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Long Itchington you should check if your lease has between seventy and 90 years remaining. There are compelling reasons why a Long Itchington flat owner with a lease having around eighty years left should take steps to make sure that a lease extension is effected without delay
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Long Itchington,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Long Itchington valuers.
After unsuccessful negotiations with the freeholder of her ground floor apartment in Long Itchington, Louise initiated the lease extension process as the 80 year threshold was rapidly approaching. The legal work completed in February 2008. The freeholder’s fees were kept to an absolute minimum.
Ms C Walker took over the lease of a one bedroom flat in Long Itchington in September 2002. The question was if we could estimate the premium would be to extend the lease by 90 years. Identical premises in Long Itchington with an extended lease were worth £184,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease terminated in 2078. Having 53 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 plus fees.
In 2010 we were e-mailed by Mr and Mrs. F Gunderson who, having completed a newly refurbished flat in Long Itchington in October 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Identical residencies in Long Itchington with a long lease were worth £290,000. The average ground rent payable was £45 collected quarterly. The lease ended on 15 September 2098. Taking into account 73 years left we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.