Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Lake District. Inevitably, the length of lease left reduces over time. This is often overlooked and only raises itself as an issue when the property needs to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Lake District have the legal entitlement to extend the lease for a further 90 years under the 1993 Leasehold Reform Act. Please give due deliberation before putting off your Lake District lease extension. Holding off that expense now likely increases the price you will ultimately incur for a lease extension
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with procure Lake District 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 conveyancing solicitor we work with provide it.
In recent months Cameron, started to get near to the eighty-year mark with the lease on his two bedroom apartment in Lake District. Having bought his flat twenty years ago, the length of the lease was of no relevance. Thankfully, he became aware that he would imminently be paying an escalated premium for a lease extension. Cameron was able to extend his lease at the eleventh hour last January. Cameron and the landlord subsequently agreed on a premium of £5,500 . If the lease had dropped lower than 80 years, the figure would have escalated by at least £1,000.
Mr and Mrs. U Howard owned a studio flat in Lake District in September 1999. We are asked if we could estimate the price would be for a 90 year extension to my lease. Similar flats in Lake District with an extended lease were valued about £233,200. The mid-range amount of ground rent was £60 billed monthly. The lease came to a finish on 8 June 2087. Having 61 years left we approximated the premium to the freeholder to extend the lease to be within £22,800 and £26,400 exclusive of fees.
In 2010 we were approached by Mr T Richardson who, having was assigned a lease of a basement apartment in Lake District in February 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by 90 years. Comparable homes in Lake District with 100 year plus lease were valued around £166,800. The mid-range amount of ground rent was £50 collected yearly. The lease concluded on 10 June 2076. Considering the 50 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £32,300 and £37,400 plus professional charges.