Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Ladbroke Grove. Inevitably, the term of lease left reduces over time. This is often overlooked and only becomes a problem when the residence needs to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Ladbroke Grove have the right to extend the lease for an additional 90 years in accordance with statute. Do give due deliberation before putting off your Ladbroke Grove lease extension. Holding off the cost now only increases the price you will ultimately incur to extend your lease
It is generally considered that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
The conveyancing solicitors that we work with undertake Ladbroke Grove lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
After protracted discussions with the landlord of her two bedroom flat in Ladbroke Grove, Grace commenced the lease extension process as the 80 year mark was swiftly coming. The transaction completed in August 2013. The landlord’s fees were restricted to slightly above 500 pounds.
In 2013 we were e-mailed by Dr Alex Nelson who, having took over the lease of a basement flat in Ladbroke Grove in November 2009. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Similar residencies in Ladbroke Grove with 100 year plus lease were valued around £270,000. The mid-range ground rent payable was £55 billed yearly. The lease ran out in 2100. Considering the 75 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.
An example of a Lease Extension case for a Ladbroke Grove premises is Flat 1 57 Oxford Gardens in January 2014. the Tribunal decided that the premium to be paidfor a new lease is £61,650.00. This case affected 1 flat. The unexpired lease term was 60 years.