The nearer a domestic lease in Looe gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, more than 100 years remaining then this decrease may be of little impact however there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending without delay. Most flat owners in Looe will qualify for this right; that being said a lawyer should be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
The lawyers that we work with handle 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.
Trailing lengthy negotiations with the freeholder of her first floor flat in Looe, Sian commenced the lease extension process just as the lease was coming close to the crucial eighty-year threshold. The transaction was concluded in January 2012. The freeholder’s fees were restricted to under 650 GBP.
Ms Melissa Smith was assigned a lease of a basement flat in Looe in March 1999. We are asked if we could approximate the price would be for a 90 year lease extension. Identical premises in Looe with 100 year plus lease were in the region of £174,200. The mid-range amount of ground rent was £55 invoiced yearly. The lease expired in 2076. Given that there were 51 years outstanding we approximated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of professional charges.
In 2010 we were phoned by Ms F Norbert who, having acquired a garden apartment in Looe in November 2007. The question was if we could estimate the premium would be for a 90 year lease extension. Similar residencies in Looe with a long lease were in the region of £285,000. The average ground rent payable was £45 billed yearly. The lease expired on 15 October 2096. Considering the 71 years unexpired we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including professional charges.