Unfortunately that a Looe residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Looe property market.Where your lease has approximately ninety years left, you should start considering a lease extension. If the number of years remaining falls below 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Looe will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your lawyer throughout the formalities.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Leeds Building Society | |
| TSB | |
| The Mortgage Works |
Using our service will provide you enhanced control over the value of your Looe leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Logan owned a studio apartment in Looe on the market with a lease of a few days over 59 years left. Logan informally approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Logan to invoke his statutory right. Logan procured expert advice and secured an acceptable resolution without going to tribunal and sell the property.
In 2013 we were called by Dr Mia Gunderson who, having acquired a one bedroom flat in Looe in May 1999. The dilemma was if we could estimate the premium would be to extend the lease by an additional years. Comparative homes in Looe with 100 year plus lease were valued about £240,600. The mid-range ground rent payable was £65 billed every twelve months. The lease ended in 2088. Taking into account 62 years outstanding we calculated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 plus expenses.
In 2009 we were phoned by Mr D Stewart who, having took over the lease of a ground floor apartment in Looe in October 2002. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Comparative premises in Looe with an extended lease were valued about £179,200. The average ground rent payable was £55 billed annually. The lease elapsed on 7 August 2077. Considering the 51 years remaining we estimated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of professional charges.