Laindon leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Laindon tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Laindon you would be well advised to investigate if your lease has between seventy and ninety years remaining. There are compelling reasons why a Laindon leaseholder with a lease having around 80 years remaining should take action to ensure that a lease extension is actioned without delay
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| 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; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Laindon,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Laindon valuers.
Matthew owned a high value apartment in Laindon on the market with a lease of just over 59 years outstanding. Matthew on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Matthew to invoke his statutory right. Matthew obtained expert advice and secured an acceptable deal without going to tribunal and readily saleable.
In 2012 we were contacted by Mr and Mrs. C Reed who, having bought a recently refurbished flat in Laindon in January 1996. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Similar homes in Laindon with a long lease were in the region of £191,000. The mid-range amount of ground rent was £65 invoiced monthly. The lease expiry date was in 2084. Taking into account 58 years left we approximated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 exclusive of costs.
In 2009 we were e-mailed by Mr and Mrs. H Martin who, having owned a studio apartment in Laindon in September 1999. We are asked if we could estimate the price could be to extend the lease by an additional years. Comparative premises in Laindon with an extended lease were in the region of £250,000. The mid-range ground rent payable was £50 collected monthly. The lease elapsed on 13 October 2095. Taking into account 69 years unexpired we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.