Looe leases on domestic properties are gradually losing value. Where your lease has about 90 years remaining, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Looe will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In some circumstances you may not qualify. There are also strict timetables and formalities to comply with once the process has commenced so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| National Westminster Bank | |
| The Mortgage Works | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a landlord in Looe,the lease extension experts that we work with will always be prepared 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.
During the course of the last few months Austin, came critically close to the 80-year mark with the lease on his basement apartment in Looe. Having bought his flat 18 years ago, the lease term was of minimal relevance. As luck would have it, he noticed he needed to take steps soon on a lease extension. Austin was able to extend his lease just under the wire in June. Austin and the landlord who owned the flat above ultimately settled on the final figure of £6,000 . If the lease had slipped below eighty years, the figure would have gone up by at least £875.
Mrs Catherine Morgan was assigned a lease of a garden flat in Looe in July 2000. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar flats in Looe with a long lease were in the region of £216,000. The average ground rent payable was £60 billed every twelve months. The lease expired on 18 September 2084. Taking into account 58 years left we estimated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus professional charges.
In 2013 we were called by Mr F Khan who, having acquired a first floor apartment in Looe in October 1996. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable residencies in Looe with an extended lease were in the region of £205,000. The mid-range amount of ground rent was £50 collected per annum. The lease expired on 14 August 2104. Considering the 78 years left we estimated the premium to the landlord to extend the lease to be between £7,600 and £8,800 plus legals.