Looe leases on residential properties are gradually losing value. Where your lease has approximately 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Looe will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In certain situations you may not be entitled. There are prescribed timetables and procedures to follow once the process is triggered so it’s best to be guided by a conveyancer during the process.
It is generally accepted that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Looe,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Looe valuers.
Jamie was the the leasehold proprietor of a studio apartment in Looe on the market with a lease of a few days over 61 years unexpired. Jamie on an informal basis spoke with his landlord being a well known Manchester-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 an increased rent to £100 per annum. No ground rent would be due on a lease extension were Jamie to exercise his statutory right. Jamie procured expert legal guidance and secured an acceptable resolution without resorting to tribunal and sell the flat.
Mr and Mrs. A Brooks took over the lease of a one bedroom flat in Looe in September 1996. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Identical homes in Looe with a long lease were in the region of £205,000. The average ground rent payable was £50 billed yearly. The lease ran out in 2104. Given that there were 78 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £7,600 and £8,800 not including fees.
Last Summer we were approach by Mr and Mrs. O Ward , who completed a garden apartment in Looe in August 2005. We are asked if we could estimate the premium would be for a 90 year lease extension. Identical residencies in Looe with an extended lease were valued about £267,600. The mid-range amount of ground rent was £65 billed yearly. The lease finished on 3 March 2093. Having 67 years unexpired we calculated the compensation to the landlord for the lease extension to be between £14,300 and £16,400 exclusive of fees.