Lakenham leases on residential deteriorating in value. Where your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you begin incurring an additional element called marriage value. Leasehold owners in Lakenham will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In certain circumstances you may not qualify. There are also strict deadlines and formalities to follow once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Lakenham,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Lakenham valuers.
In recent months Teddy, started to get close to the 80-year threshold with the lease on his two bedroom flat in Lakenham. In buying his flat 18 years previously, the length of the lease was of little concern. by good luck, he realised he needed to take action soon on a lease extension. Teddy was able to extend his lease at the eleventh hour last March. Teddy and the landlord subsequently agreed on a premium of £6,000 . If he failed to meet the deadline, the premium would have become more costly by a minimum £875.
In 2011 we were called by Dr Alexandra Young who, having was assigned a lease of a studio flat in Lakenham in October 2009. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Comparable properties in Lakenham with an extended lease were valued about £295,000. The mid-range ground rent payable was £45 billed monthly. The lease came to a finish on 1 March 2099. Having 74 years remaining we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus expenses.
Ms I Richardson was assigned a lease of a one bedroom apartment in Lakenham in March 2001. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Comparable premises in Lakenham with 100 year plus lease were valued around £243,000. The average amount of ground rent was £65 billed yearly. The lease elapsed in 2088. Given that there were 63 years remaining we estimated the compensation to the freeholder for the lease extension to be within £20,000 and £23,000 plus expenses.