The re-sale value of a leasehold property in Lakenham depends on how long the lease has left to run. If it is near to or less than eighty years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years remaining so that formalities can be finalised in advance of the eighty year cut off point. Statute entitles Lakenham qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a supplemental term of ninety years. The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Lakenham,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Lakenham valuers.
Last Spring Riley, started to get close to the eighty-year mark with the lease on his leasehold apartment in Lakenham. In buying his property twenty years previously, the lease term was of little importance. Fortunately, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Riley arranged for a lease extension at the eleventh hour in March. Riley and the landlord who owned the flat above eventually settled on a premium of £5,500 . If the lease had dipped below eighty years, the sum would have become more costly by at least £1,000.
Last March we were contacted by Mr Lewis Adams , who purchased a studio flat in Lakenham in April 2004. The dilemma was if we could estimate the premium would be to prolong the lease by an additional years. Comparable premises in Lakenham with 100 year plus lease were valued about £267,600. The mid-range amount of ground rent was £65 invoiced monthly. The lease terminated in 2092. Considering the 67 years left we approximated the compensation to the freeholder for the lease extension to be between £14,300 and £16,400 plus professional charges.
In 2009 we were phoned by Dr B Dupont who, having moved into a first floor flat in Lakenham in September 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Identical homes in Lakenham with a long lease were valued around £201,200. The mid-range amount of ground rent was £55 invoiced quarterly. The lease elapsed in 2081. Given that there were 56 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 plus legals.