It’s a harsh truth that a Lacock residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Lacock property prices.Where your lease has approximately ninety years left, 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 dips under 80 years - otherwise a higher amount will be payable. The majority of flat owners in Lacock will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some cases you may not be entitled. 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 throughout the formalities.
Leasehold residencies in Lacock with over 100 years left on the lease are sometimes 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 to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you better control over the value of your Lacock leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Dylan owned a 2 bedroom apartment in Lacock on the market with a lease of just over sixty years unexpired. Dylan on an informal basis spoke with his freeholder a well known local-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Dylan to exercise his statutory right. Dylan procured expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.
Mr and Mrs. H Clark took over the lease of a one bedroom apartment in Lacock in October 1999. The dilemma was if we could approximate the premium would be for a 90 year lease extension. Comparable residencies in Lacock with a long lease were worth £250,400. The average amount of ground rent was £65 collected yearly. The lease elapsed in 2090. Given that there were 64 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £19,000 and £22,000 plus expenses.
Last month we were called by Mr Owen Alexander , who took over the lease of a one bedroom apartment in Lacock in January 2009. We are asked if we could estimate the premium would be for a ninety year lease extension. Identical premises in Lacock with a long lease were worth £189,000. The average ground rent payable was £55 invoiced monthly. The lease terminated in 2079. Considering the 53 years outstanding we approximated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 not including fees.