It’s a harsh truth that a Immingham residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Immingham property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher amount will be payable. Most leasehold owners in Immingham will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold residencies in Immingham with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Using our service will provide you better control over the value of your Immingham leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Alex, started to get near to the eighty-year mark with the lease on his studio apartment in Immingham. Having bought his flat two decades ago, the lease term was of no concern. Thankfully, he became aware that he would imminently be paying way over the odds for Extending the lease. Alex arranged for a lease extension just under the wire in April. Alex and the landlord ultimately agreed on an amount of £5,500 . If he failed to meet the deadline, the figure would have increased by a minimum £850.
Dr Hannah Ward completed a first floor flat in Immingham in July 2004. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Similar premises in Immingham with a long lease were valued around £264,000. The average ground rent payable was £60 collected yearly. The lease expiry date was on 26 November 2078. Taking into account 53 years remaining we calculated the premium to the freeholder for the lease extension to be within £37,100 and £42,800 plus professional charges.
Dr Harriet Cook owned a first floor flat in Immingham in November 2002. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Identical properties in Immingham with an extended lease were in the region of £218,000. The average amount of ground rent was £45 collected every twelve months. The lease concluded in 2088. Considering the 63 years remaining we calculated the compensation to the freeholder for the lease extension to be between £17,100 and £19,800 plus costs.