The re-sale value of a leasehold property in Looe depends on how long the lease has left to run. If it is near to or less than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is preferable to start the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be concluded in advance of the eighty year mark. Statute enables Looe qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a further term of ninety years. The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Looe with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Looe can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor 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 a wealth of experience procuring Looe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of protracted discussions with the freeholder of her first floor flat in Looe, Lauren initiated the lease extension process just as the lease was coming close to the all-important eighty-year mark. The transaction was finalised in June 2005. The landlord’s charges were kept to an absolute minimum.
Dr Joseph Mercier bought a one bedroom flat in Looe in September 2002. We are asked if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Similar flats in Looe with an extended lease were worth £233,200. The average amount of ground rent was £60 billed quarterly. The lease concluded in 2087. Considering the 61 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 plus fees.
Ms C Ramírez moved into a one bedroom apartment in Looe in January 1995. The question was if we could estimate the price could be to extend the lease by an additional years. Comparable homes in Looe with a long lease were valued about £171,800. The average amount of ground rent was £55 billed annually. The lease lapsed in 2076. Taking into account 50 years unexpired we approximated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 plus fees.