With a residential leasehold property in Looe, you are actually buying an entitlement to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than 80 years left. Leasehold owners in Looe with a lease approaching 81 years unexpired should seriously consider extending it sooner than later. When a lease has less than eighty years remaining, under the current statute the freeholder is entitled to calculate and levy a greater premium, based on a technical computation, known as “marriage value” which is payable.
Leasehold premises in Looe with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you better control over the value of your Looe leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Charlie owned a high value apartment in Looe being sold with a lease of just over 61 years left. Charlie informally spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Charlie to invoke his statutory right. Charlie procured expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Last Autumn we were contacted by Mr P Scott , who purchased a basement flat in Looe in July 2001. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar premises in Looe with 100 year plus lease were in the region of £275,000. The average ground rent payable was £65 invoiced monthly. The lease lapsed in 2093. Considering the 68 years left we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including expenses.
Last Winter we were called by Mrs M White , who acquired a one bedroom apartment in Looe in July 1999. The question was if we could estimate the premium would likely be for a ninety year lease extension. Similar residencies in Looe with 100 year plus lease were worth £213,600. The average ground rent payable was £60 collected annually. The lease lapsed in 2082. Considering the 57 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 not including costs.