Lacock leases on domestic deteriorating in value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in Lacock will mostly qualify for a lease extension; however a solicitor should be able confirm if you qualify. In some circumstances you may not qualify. There are prescribed deadlines and formalities to comply with once the process has started so it’s wise to be guided by a conveyancer during the process.
Leasehold properties in Lacock with more than one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Lacock can be a difficult process. We recommend you get professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Lacock lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Hunter, started to get near to the eighty-year threshold with the lease on his ground floor apartment in Lacock. Having bought his property two decades ago, the lease term was of little concern. Thankfully, he became aware that he would soon be paying an inflated amount for Extending the lease. Hunter was able to extend his lease at the eleventh hour in May. Hunter and the landlord ultimately agreed on sum of £5,500 . If the lease had fallen below 80 years, the amount would have increased by a minimum £1,075.
In 2009 we were contacted by Ms V Evans who, having purchased a basement flat in Lacock in April 2005. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparable premises in Lacock with a long lease were valued around £191,400. The mid-range amount of ground rent was £55 collected yearly. The lease expired on 14 March 2079. Considering the 54 years as a residual term we approximated the premium to the landlord for the lease extension to be between £34,200 and £39,600 exclusive of legals.
In 2010 we were e-mailed by Mrs Jade Turner who, having bought a first floor apartment in Lacock in April 2004. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparative flats in Lacock with an extended lease were worth £295,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease terminated on 25 May 2099. Taking into account 74 years left we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of expenses.