It’s a harsh truth that a Laceby residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Laceby property market.Once your lease nears 85ish years, you need to start considering a lease extension. If lease term falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Laceby will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Laceby can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor with experience in this area.
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 dealing with Laceby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Freddie, came perilously near to the 80-year mark with the lease on his ground floor flat in Laceby. In buying his flat 18 years previously, the lease term was of little relevance. by good luck, he noticed he would imminently be paying an escalated premium for Extending the lease. Freddie arranged for a lease extension just under the wire in July. Freddie and the freeholder eventually settled on an amount of £6,000 . If he had missed the deadline, the figure would have escalated by at least £850.
Last Autumn we were called by Dr U Fournier , who acquired a one bedroom flat in Laceby in February 1998. The question was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Similar residencies in Laceby with 100 year plus lease were in the region of £264,000. The mid-range ground rent payable was £60 invoiced yearly. The lease elapsed on 4 October 2079. Given that there were 53 years left we estimated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 exclusive of expenses.
In 2011 we were e-mailed by Mrs Kirsty Laurent who, having moved into a ground floor flat in Laceby in June 1998. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Similar homes in Laceby with an extended lease were valued about £225,400. The mid-range ground rent payable was £45 collected every twelve months. The lease terminated on 13 November 2090. Having 64 years remaining we calculated the premium to the freeholder to extend the lease to be between £16,200 and £18,600 plus legals.