Unfortunately that a Lanchester residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Lanchester property prices.Once your lease nears 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 falls under eighty years - otherwise a higher premium will be due. Most leasehold owners in Lanchester will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold properties in Lanchester with more than 100 years outstanding 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 home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Lanchester can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer with experience in lease extensions.
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 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.
Last Autumn Logan, came critically near to the eighty-year threshold with the lease on his garden flat in Lanchester. Having purchased his property two decades ago, the lease term was of no relevance. As luck would have it, he realised he would imminently be paying an inflated amount for a lease extension. Logan arranged for a lease extension just under the wire in August. Logan and the freeholder via the managing agents in the end settled on an amount of £5,500 . If the lease had dropped to less than 80 years, the sum would have increased by a minimum £1,150.
In 2011 we were called by Mrs Madeleine Ward who, having took over the lease of a recently refurbished apartment in Lanchester in January 2001. The question was if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparable premises in Lanchester with a long lease were valued around £242,600. The mid-range ground rent payable was £45 collected monthly. The lease elapsed in 2092. Given that there were 67 years unexpired we estimated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 exclusive of legals.
In 2014 we were contacted by Mr and Mrs. A Dupont who, having acquired a newly refurbished apartment in Lanchester in September 1999. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Identical properties in Lanchester with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease came to a finish on 10 June 2103. Given that there were 78 years left we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including professional charges.