The closer a residential lease in Loughton nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, beyond 125 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. The majority of flat owners in Loughton will meet the qualifying criteria; however a conveyancing solicitor can confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Using our service gives you enhanced control over the value of your Loughton leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last year Edward, started to get near to the 80-year mark with the lease on his garden flat in Loughton. In buying his home 18 years ago, the lease term was of no significance. by good luck, he became aware that he would soon be paying an inflated amount for a lease extension. Edward arranged for a lease extension just ahead of time last May. Edward and the freeholder in the end agreed on a premium of £6,000 . If he not met the deadline, the figure would have gone up by a minimum £1,100.
Last March we were phoned by Mr Joshua Bailey , who completed a garden flat in Loughton in June 2007. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by a further 90 years. Identical premises in Loughton with an extended lease were valued about £191,000. The mid-range ground rent payable was £65 billed quarterly. The lease expired in 2084. Considering the 58 years left we estimated the compensation to the freeholder to extend the lease to be within £23,800 and £27,400 plus legals.
An example of a Freehold Enfranchisement decision for a Loughton flat 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 affected 2 flats. The unexpired residue of the current lease was 69.26 years.