As the the remaining lease term of a Lake District domestic lease decreases so does its value and therefore the value of your property. Where the lease has, in excess of 100 years to run then this decrease may be negligible however there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should consider extending sooner rather than later. Many flat owners in Lake District will qualify for this right; however a conveyancer should be able to confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Lake District can be a difficult process. We recommend you procure professional help from a lawyer and surveyor 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.
Last Autumn Gabriel, came dangerously close to the 80-year threshold with the lease on his basement apartment in Lake District. In buying his flat two decades ago, the length of the lease was of no significance. As luck would have it, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Gabriel was able to extend his lease just under the wire last January. Gabriel and the landlord eventually settled on an amount of £5,000 . If he failed to meet the deadline, the price would have gone up by a minimum £900.
In 2010 we were approached by Mrs Harriet Brooks who, having completed a ground floor flat in Lake District in July 2011. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical properties in Lake District with an extended lease were worth £223,400. The average amount of ground rent was £60 collected every twelve months. The lease ended in 2085. Considering the 59 years left we estimated the premium to the landlord for the lease extension to be within £27,600 and £31,800 plus costs.
Last year we were e-mailed by Mr and Mrs. V Williams , who acquired a studio apartment in Lake District in August 1999. We are asked if we could estimate the price could be for a ninety year lease extension. Identical premises in Lake District with a long lease were in the region of £205,000. The average amount of ground rent was £50 collected every twelve months. The lease terminated in 2105. Taking into account 79 years remaining we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including professional charges.