Lake leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Lake tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Lake you must see if your lease has between seventy and 90 years left. There are good reasons why a Lake flat owner with a lease having around eighty years unexpired should take action to make sure that a lease extension is effected without delay
Leasehold properties in Lake with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Godiva Mortgages | |
| Nationwide Building Society | |
| TSB |
The conveyancing solicitors that we work with handle Lake 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 lawyer we work with provide it.
Noah was the the leasehold owner of a high value apartment in Lake being marketed with a lease of a little over 72 years remaining. Noah informally approached his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 yearly. Ordinarily, ground rent would not be due on a lease extension were Noah to invoke his statutory right. Noah procured expert advice and was able to make an informed decision and handle with the matter and sell the property.
In 2013 we were e-mailed by Mr and Mrs. V Thomas who, having was assigned a lease of a first floor apartment in Lake in January 2012. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Identical properties in Lake with an extended lease were in the region of £201,200. The average amount of ground rent was £55 collected yearly. The lease expiry date was on 13 August 2082. Given that there were 56 years remaining we estimated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of legals.
In 2010 we were e-mailed by Mr and Mrs. L Wright who, having owned a purpose-built flat in Lake in May 2003. The question was if we could estimate the price would be to prolong the lease by 90 years. Comparable flats in Lake with a long lease were valued about £300,000. The average ground rent payable was £50 invoiced quarterly. The lease finished in 2102. Taking into account 76 years left we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of legals.