Lanchester 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 the lease gets more expensive. The majority of owners of residential leasehold property in Lanchester enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Lanchester you must investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Lanchester can be a difficult process. We recommend you obtain 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 in-depth market knowledge procuring Lanchester lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy correspondence with the freeholder of her one bedroom flat in Lanchester, Chloe commenced the lease extension process as the eighty year deadline was swiftly nearing. The transaction was finalised in November 2005. The freeholder’s charges were kept to an absolute minimum.
Ms B Green acquired a purpose-built apartment in Lanchester in March 2000. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Similar premises in Lanchester with 100 year plus lease were valued around £270,000. The mid-range amount of ground rent was £55 billed monthly. The lease ran out on 18 August 2100. Having 74 years outstanding we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.
In 2013 we were called by Ms Chloe Jones who, having moved into a first floor flat in Lanchester in February 2003. We are asked if we could approximate the premium would be to extend the lease by an additional years. Comparable residencies in Lanchester with 100 year plus lease were worth £166,400. The average ground rent payable was £60 collected annually. The lease finished on 19 January 2080. Given that there were 54 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 not including legals.