Laceby leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Laceby residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Laceby you would be well advised to check if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Laceby can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer with experience in lease extensions.
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 Laceby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Leon was the the leasehold owner of a conversion flat in Laceby being sold with a lease of a little over fifty eight years outstanding. Leon informally contacted his landlord being a well known local-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Leon to exercise his statutory right. Leon obtained expert advice and secured satisfactory resolution without going to tribunal and sell the property.
In 2012 we were called by Dr C Ward who, having owned a one bedroom flat in Laceby in June 1995. The question was if we could estimate the premium would be for a ninety year extension to my lease. Identical properties in Laceby with a long lease were valued around £275,000. The average ground rent payable was £55 collected every twelve months. The lease termination date was on 25 September 2102. Given that there were 77 years left we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including fees.
Ms N Williams completed a first floor flat in Laceby in May 2012. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Comparative residencies in Laceby with a long lease were valued around £183,600. The average amount of ground rent was £65 invoiced quarterly. The lease came to a finish in 2082. Considering the 57 years outstanding we approximated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of professional charges.