There is no doubt about it a leasehold property in Loughton is a wasting asset as a result of the diminishing lease term. Where the residual term has, in excess of 100 years to run then this decrease may be fractional however there will become a stage when a lease has under 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 reason why you should consider extending without delay. Many flat owners in Loughton will qualify for this right; however a conveyancer should be able to advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises 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. |
| 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 |
| 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 freeholder in Loughton,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Loughton valuers.
After lengthy correspondence with the freeholder of her ground floor flat in Loughton, Jordan started the lease extension process as the 80 year threshold was swiftly advancing. The transaction completed in October 2009. The landlord’s fees were kept to an absolute minimum.
Dr M Lewis acquired a first floor flat in Loughton in May 2001. The dilemma was if we could shed any light on how much (approximately) premium would be to prolong the lease by a further 90 years. Comparative residencies in Loughton with a long lease were in the region of £285,000. The mid-range ground rent payable was £55 collected yearly. The lease expiry date was on 20 February 2105. Given that there were 79 years as a residual term we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including expenses.
An example of a Freehold Enfranchisement case 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 affected 2 flats. The unexpired term was 69.26 years.