Lytchett Matravers leases on domestic properties are gradually losing value. if your lease has in the region of ninety years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for your lease extension to take place before the term of the current lease falls below 80 years - otherwise a higher premium will be payable. Flat owners in Lytchett Matravers will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some cases you may not be entitled. There are also strict deadlines and steps to comply with once the process is initiated so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, 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. |
| 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; |
| 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 |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Lytchett Matravers,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 experience and the close ties they enjoy with Lytchett Matravers valuers.
Trailing unsuccessful discussions with the freeholder of her studio apartment in Lytchett Matravers, Alice started the lease extension process just as her lease was nearing the all-important 80-year deadline. The lease extension completed in March 2008. The freeholder’s fees were kept to an absolute minimum.
Last February we were phoned by Dr E Thomas , who purchased a one bedroom flat in Lytchett Matravers in November 2000. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Identical residencies in Lytchett Matravers with a long lease were valued around £235,200. The mid-range ground rent payable was £45 billed every twelve months. The lease came to a finish on 19 August 2090. Taking into account 66 years outstanding we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including legals.
Last Christmas we were called by Mrs S Phillips , who moved into a basement apartment in Lytchett Matravers in May 2007. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Identical residencies in Lytchett Matravers with 100 year plus lease were valued about £280,000. The mid-range ground rent payable was £55 invoiced per annum. The lease terminated on 3 October 2101. Having 77 years unexpired we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus legals.