Unfortunately that a Looe residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Looe property market.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher amount will be due. The majority of flat owners in Looe will be able to extend under the legislation; however a lawyer should be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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 |
Lease extensions in Looe can be a difficult process. We recommend you get professional help from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Looe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful negotiations with the freeholder of her first floor flat in Looe, Morgan commenced the lease extension process as the eighty year deadline was fast advancing. The legal work was finalised in July 2012. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. Y Peterson purchased a one bedroom apartment in Looe in November 2008. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparable residencies in Looe with a long lease were in the region of £205,000. The mid-range ground rent payable was £50 billed yearly. The lease termination date was in 2103. Taking into account 78 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of expenses.
Last Summer we were called by Mr M Rose , who completed a one bedroom flat in Looe in November 2002. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparative flats in Looe with an extended lease were valued around £267,600. The average amount of ground rent was £65 collected per annum. The lease terminated in 2092. Given that there were 67 years remaining we approximated the premium to the freeholder for the lease extension to be within £14,300 and £16,400 plus costs.