Looe Lease Extension - Free Consultation

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Main reasons to commence your Looe lease extension


Top reasons for lease extension now:

Increase your lease and increase your Looe property value

Looe leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Most owners of residential leasehold property in Looe enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Looe you must investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value

Looe property with a lease extension has roughly the same value as a freehold

It is generally accepted that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.

Banks and Building Societies will not lend with a short lease

The trend since over the last decade has been for lenders to tighten lending criteria generally - this has extended to the property over which the home loan is to be granted. This has resulted in the minimum number of years remaining under the lease required by lenders has increased. In the past lenders would grant a mortgage on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

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.
Coventry Building Society 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.
Halifax Minimum 70 years from the date of the mortgage.
Royal Bank of Scotland Mortgage term plus 30 years.

Get in touch with one of our Looe lease extension solicitors or enfranchisement solicitors

Lease extensions in Looe can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor 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.

Looe Lease Extension Example Cases:

Jack, Looe, Cornwall

Last year Jack, started to get near to the eighty-year threshold with the lease on his ground floor flat in Looe. Having bought his home 18 years previously, the unexpired term was of little concern. Luckily, he noticed he needed to take action soon on Extending the lease. Jack was able to extend his lease at the eleventh hour last June. Jack and the freeholder via the management company in the end agreed on an amount of £5,500 . If he not met the deadline, the premium would have increased by a minimum £1,000.

Looe case:

In 2009 we were approached by Dr Melissa Miller who, having moved into a one bedroom apartment in Looe in February 2000. The question was if we could estimate the premium could be to extend the lease by 90 years. Identical premises in Looe with a long lease were in the region of £174,200. The average amount of ground rent was £55 collected yearly. The lease terminated in 2075. Considering the 51 years remaining we approximated the premium to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of legals.

Looe case:

Last year we were e-mailed by Mr Austin Bennett , who completed a purpose-built apartment in Looe in April 2005. The question was if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Similar homes in Looe with 100 year plus lease were valued around £285,000. The average ground rent payable was £45 collected annually. The lease finished in 2095. Having 71 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including legals.