Unfortunately that a Laleham residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Laleham property prices.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher amount will be due. The majority of flat owners in Laleham will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
Engaging our service will provide you increased control over the value of your Laleham leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year David, came dangerously near to the 80-year mark with the lease on his purpose- built apartment in Laleham. In buying his flat 19 years previously, the length of the lease was of little bearing. Thankfully, he noticed he would soon be paying an inflated amount for Extending the lease. David was able to extend his lease at the eleventh hour in March. David and the freeholder in the end settled on the final figure of £6,000 . If the lease had dipped below eighty years, the sum would have escalated by a minimum £1,000.
Last Winter we were called by Mrs H Clark , who purchased a recently refurbished flat in Laleham in November 1996. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Comparable residencies in Laleham with an extended lease were in the region of £191,000. The mid-range amount of ground rent was £65 collected monthly. The lease finished in 2084. Taking into account 58 years left we estimated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 exclusive of fees.
An example of a Lease Extension matter before the tribunal for a Laleham flat is 147 Redford Close in June 2012. The Tribunal determined the lease extension premium to be at £4,200 This case affected 1 flat. The remaining number of years on the lease was 82.93 years.