As the length of the unexpired term of a Lake District residential lease diminished so does its value and therefore the value of your property. Where the residual term has, more than 100 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending sooner than later. Many flat owners in Lake District will meet the qualifying criteria; however a conveyancing solicitor can confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Lake District,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Lake District valuers.
Last year Harrison, came seriously near to the eighty-year mark with the lease on his leasehold flat in Lake District. Having purchased his home twenty years ago, the lease term was of little interest. Fortunately, he realised he needed to take action soon on a lease extension. Harrison extended the lease just under the wire last May. Harrison and the landlord who owned the flat above eventually agreed on a premium of £5,000 . If he failed to meet the deadline, the figure would have escalated by at least £1,125.
In 2012 we were phoned by Mr and Mrs. M Williams who, having completed a first floor apartment in Lake District in October 1997. We are asked if we could approximate the price could be to prolong the lease by an additional years. Identical residencies in Lake District with a long lease were valued around £257,800. The mid-range amount of ground rent was £65 invoiced annually. The lease elapsed on 12 April 2091. Given that there were 65 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of professional charges.
In 2010 we were approached by Mr and Mrs. K Harris who, having took over the lease of a ground floor apartment in Lake District in October 1996. The question was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Comparative flats in Lake District with a long lease were worth £191,400. The mid-range ground rent payable was £55 billed yearly. The lease lapsed on 20 April 2080. Given that there were 54 years unexpired we approximated the premium to the landlord for the lease extension to be within £34,200 and £39,600 exclusive of costs.