When it comes to residential leasehold property in Looe, you are actually purchasing an entitlement to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than eighty years remaining. Leasehold owners in Looe with a lease nearing 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has under 80 years outstanding, under the current statute the landlord can calculate and charge a larger premium, based on a technical multiplication, known as “marriage value” which is due.
Leasehold premises in Looe with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancing solicitors that we work with undertake Looe lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Half a year ago Eliot, came very near to the eighty-year threshold with the lease on his first floor flat in Looe. Having purchased his flat two decades ago, the unexpired term was of minimal relevance. by good luck, it dawned on him that he would soon be paying way over the odds for Extending the lease. Eliot was able to extend his lease just ahead of time in August. Eliot and the landlord subsequently settled on the final figure of £5,000 . If he had missed the deadline, the sum would have gone up by a minimum £1,025.
In 2011 we were called by Mr and Mrs. B Michel who, having purchased a newly refurbished apartment in Looe in July 2008. We are asked if we could approximate the price could be to extend the lease by 90 years. Comparative premises in Looe with 100 year plus lease were worth £210,000. The average amount of ground rent was £50 collected per annum. The lease came to a finish on 6 April 2106. Given that there were 80 years remaining we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including professional charges.
In 2011 we were called by Dr Mollie Sharif who, having owned a recently refurbished flat in Looe in September 1997. We are asked if we could estimate the price could be for a 90 year lease extension. Similar premises in Looe with an extended lease were worth £280,000. The mid-range ground rent payable was £45 invoiced quarterly. The lease concluded on 16 August 2095. Taking into account 69 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.