Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Lake District. Inevitably, the length of lease remaining reduces as time goes by. This is often overlooked and only raises itself as an issue when the residence has to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension. Eligible leaseholders in Lake District have the legal entitlement to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Do give careful consideration before delaying your Lake District lease extension. Putting off that expense now likely increases the price you will eventually incur for a lease extension
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Lake District can be a difficult process. We recommend you obtain professional help from a lawyer and valuer 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 a wealth of experience procuring Lake District lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
14 months ago Samuel, came seriously near to the eighty-year threshold with the lease on his studio flat in Lake District. Having bought his home twenty years previously, the lease term was of no bearing. As luck would have it, he realised he would soon be paying an escalated premium for Extending the lease. Samuel was able to extend his lease at the eleventh hour in March. Samuel and the freeholder ultimately agreed on a premium of £6,000 . If the lease had slipped lower than eighty years, the premium would have gone up by a minimum £1,025.
Last July we were contacted by Dr Jodie Davis , who bought a one bedroom flat in Lake District in March 2011. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparable flats in Lake District with an extended lease were valued around £181,600. The mid-range amount of ground rent was £55 collected quarterly. The lease finished in 2077. Given that there were 52 years outstanding we estimated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 plus professional charges.
Dr Ollie Mason owned a one bedroom apartment in Lake District in April 2010. The question was if we could approximate the premium could be to extend the lease by ninety years. Identical residencies in Lake District with 100 year plus lease were in the region of £285,000. The average ground rent payable was £45 collected annually. The lease ended on 5 November 2097. Given that there were 72 years remaining we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus costs.