When it comes to residential leasehold premises in Looe, you effectively rent it for a certain period of time. These days 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 a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than eighty years remaining. Leasehold owners in Looe with a lease nearing 81 years left should seriously consider extending it as soon as possible. Once the lease term has under eighty years outstanding, under the relevant Act the landlord can calculate and levy a greater amount, based on a technical computation, known as “marriage value” which is payable.
Leasehold premises in Looe with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Looe,the lease extension experts 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 Looe valuers.
Following lengthy discussions with the landlord of her first floor flat in Looe, Shannon initiated the lease extension process just as her lease was nearing the crucial 80-year threshold. The transaction completed in February 2010. The freeholder’s fees were kept to an absolute minimum.
Last month we were e-mailed by Dr G Simon , who took over the lease of a studio flat in Looe in June 1995. The dilemma was if we could estimate the price would be to extend the lease by an additional years. Comparable premises in Looe with a long lease were in the region of £200,000. The average amount of ground rent was £50 invoiced annually. The lease came to a finish on 22 October 2103. Having 77 years unexpired we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus professional charges.
Last Christmas we were approach by Mr and Mrs. B Watson , who acquired a basement apartment in Looe in April 1998. The question was if we could estimate the price would likely be to prolong the lease by an additional years. Similar homes in Looe with an extended lease were valued about £265,200. The average ground rent payable was £65 invoiced quarterly. The lease expired in 2092. Taking into account 66 years left we estimated the premium to the freeholder for the lease extension to be between £15,200 and £17,600 not including expenses.