Unfortunately that a Lakenham residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Lakenham property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term dips below 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Lakenham will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold properties in Lakenham with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges merit it.
| 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. |
| Coventry Building Society | 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Lakenham,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Lakenham valuers.
Kai was the the leasehold owner of a high value apartment in Lakenham being sold with a lease of a little over 61 years unexpired. Kai on an informal basis spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. No ground rent would be payable on a lease extension were Kai to invoke his statutory right. Kai procured expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
Last Christmas we were e-mailed by Mr Y Gómez , who owned a garden flat in Lakenham in February 2000. The dilemma was if we could approximate the price would likely be for a ninety year lease extension. Comparable flats in Lakenham with a long lease were valued around £216,000. The mid-range amount of ground rent was £60 billed per annum. The lease elapsed in 2084. Having 58 years unexpired we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including fees.
Dr Hollie Ward was assigned a lease of a one bedroom flat in Lakenham in May 2001. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative flats in Lakenham with an extended lease were valued about £200,000. The average ground rent payable was £50 billed quarterly. The lease elapsed on 1 February 2104. Having 78 years remaining we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus professional charges.