Loughton 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 your lease becomes more expensive. It is the case that most Loughton tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Loughton you would be well advised to check if your lease has between seventy and 90 years remaining. There are compelling reasons why a Loughton leaseholder with a lease having around eighty years left should take action to ensure that a lease extension is actioned without delay
It is generally considered that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Loughton can be a difficult process. We recommend you procure professional help from a conveyancing solicitor 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.
Last October Connor, started to get near to the eighty-year mark with the lease on his one bedroom apartment in Loughton. Having bought his home twenty years previously, the unexpired term was of minimal significance. Fortunately, he recognised he would imminently be paying an escalated premium for a lease extension. Connor arranged for a lease extension just under the wire last January. Connor and the freeholder via the management company eventually agreed on the final figure of £5,000 . If the lease had descended below eighty years, the figure would have become more costly by a minimum £900.
Ms Isobel Díaz took over the lease of a basement flat in Loughton in April 1995. The dilemma was if we could approximate the price would likely be to extend the lease by ninety years. Comparable properties in Loughton with 100 year plus lease were worth £255,000. The mid-range ground rent payable was £50 collected annually. The lease finished on 28 November 2097. Having 71 years unexpired we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including legals.
An example of a Freehold Enfranchisement matter before the tribunal for a Loughton property 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.