Laleham leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Laleham residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Laleham you must see if your lease has between 70 and 90 years left. There are good reasons why a Laleham flat owner with a lease having around 80 years remaining should take action to ensure that a lease extension is put in place without delay
Leasehold residencies in Laleham with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Laleham,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Laleham valuers.
Aaron owned a studio flat in Laleham on the market with a lease of just over fifty eight years unexpired. Aaron informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Aaron to exercise his statutory right. Aaron procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.
In 2012 we were contacted by Mr and Mrs. T Wilson who, having moved into a ground floor apartment in Laleham in October 2004. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable flats in Laleham with a long lease were worth £218,000. The mid-range amount of ground rent was £45 collected monthly. The lease ran out in 2088. Considering the 63 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 not including costs.
An example of a Lease Extension decision for a Laleham property is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case related to 1 flat. The number of years remaining on the existing lease(s) was 82.93 years.