Lanchester leases on domestic properties are gradually losing value. if your lease has in the region of 90 years left, you should start considering the need for a lease extension. If lease term falls under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Lanchester will usually qualify for a lease extension; however It would be wise to check with a lawyer to check if you qualify. In certain cases you may not qualify. There are prescribed deadlines and formalities to follow once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with in excess of 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 property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Halifax | |
| Santander | |
| Skipton Building Society | |
| Royal Bank of Scotland |
Irrespective of whether you are a tenant or a landlord in Lanchester,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Lanchester valuers.
Jude was the the leasehold proprietor of a high value apartment in Lanchester on the market with a lease of a little over sixty years remaining. Jude informally approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Jude to invoke his statutory right. Jude procured expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
Mr and Mrs. L Leroy was assigned a lease of a newly refurbished flat in Lanchester in April 2009. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparable homes in Lanchester with an extended lease were worth £290,000. The average ground rent payable was £60 billed monthly. The lease lapsed in 2106. Having 80 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of fees.
Last Spring we were contacted by Mrs F Patel , who completed a one bedroom apartment in Lanchester in March 2000. The dilemma was if we could estimate the premium would be for a ninety year extension to my lease. Similar properties in Lanchester with an extended lease were valued around £200,800. The average ground rent payable was £65 billed monthly. The lease elapsed on 2 July 2086. Taking into account 60 years unexpired we approximated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of legals.