With a long leasehold property in Loughton, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably when there are fewer than 80 years left. Leasehold owners in Loughton with a lease nearing 81 years left should seriously think of extending it as soon as possible. Once a lease has below 80 years outstanding, under the current legislation the landlord can calculate and charge a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold properties in Loughton with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Loughton can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience procuring Loughton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to protracted correspondence with the landlord of her one bedroom flat in Loughton, Sarah commenced the lease extension process just as the lease was nearing the critical eighty-year deadline. The transaction was finalised in May 2009. The landlord’s charges were restricted to below 650 pounds.
Last Autumn we were phoned by Dr Y David , who owned a newly refurbished flat in Loughton in January 2001. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Identical premises in Loughton with 100 year plus lease were in the region of £255,000. The average ground rent payable was £50 invoiced per annum. The lease expired in 2095. Considering the 70 years unexpired we approximated the compensation to the landlord for the lease extension to be within £10,500 and £12,000 plus fees.
An example of a Freehold Enfranchisement decision for a Loughton premises is 201 & 201a St. Barnabas Road in October 2013. The Tribunal decided that the price to be paid by the Applicants for the freehold interest is £20,071. This case related to 2 flats. The number of years remaining on the existing lease(s) was 69.26 years.