Unfortunately that a Lancaster residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Lancaster property market.Once your lease gets to 85ish years, you need to 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 dips lower than 80 years - otherwise a higher amount will be payable. The majority of flat owners in Lancaster will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Lancaster can be a difficult process. We recommend you procure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Lancaster lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
John owned a high value apartment in Lancaster on the market with a lease of a little over 61 years left. John on an informal basis contacted his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were John to exercise his statutory right. John obtained expert advice and was able to make an informed judgement and deal with the matter and sell the flat.
Mr Adam Green was assigned a lease of a recently refurbished apartment in Lancaster in August 2007. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Identical residencies in Lancaster with a long lease were valued about £240,600. The mid-range ground rent payable was £65 invoiced monthly. The lease concluded in 2087. Taking into account 62 years remaining we approximated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 not including fees.
Mr Evan Thomas bought a studio flat in Lancaster in September 2011. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Identical premises in Lancaster with an extended lease were worth £179,200. The mid-range ground rent payable was £55 collected quarterly. The lease expired in 2076. Considering the 51 years left we estimated the premium to the landlord to extend the lease to be between £31,400 and £36,200 plus professional charges.