Looe leases on residential deteriorating in value. if your lease has about ninety years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for the lease extension to take place before the term of the current lease falls below 80 years - otherwise a higher amount will be due. Leasehold owners in Looe will mostly be legally entitled to a lease extension; however a solicitor will check if you qualify. In some cases you may not qualify. There are prescribed timetables and steps to comply with once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Using our service gives you enhanced control over the value of your Looe leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Michael was the the leasehold owner of a 2 bedroom apartment in Looe being marketed with a lease of a little over 61 years left. Michael on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 yearly. No ground rent would be due on a lease extension were Michael to invoke his statutory right. Michael procured expert advice and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Mr Reuben Reed moved into a garden flat in Looe in September 1998. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparative premises in Looe with an extended lease were in the region of £181,600. The mid-range amount of ground rent was £55 collected quarterly. The lease elapsed in 2077. Considering the 52 years unexpired we estimated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 plus fees.
Mr and Mrs. P Roux took over the lease of a one bedroom apartment in Looe in April 1996. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Identical flats in Looe with a long lease were worth £290,000. The mid-range amount of ground rent was £45 billed annually. The lease expiry date was in 2097. Considering the 72 years remaining we estimated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 exclusive of expenses.