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 not fully appreciated in the first few years due to the deflation being disguised by increases in the Lanchester property prices.Where your lease has approximately ninety years left, 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 80 years - otherwise a higher premium will be payable. Most flat owners in Lanchester will be able to extend under the legislation; however a conveyancer should be able to confirm whether you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancer for the duration of the process.
It is generally accepted that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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 |
| Yorkshire 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. |
Using our service gives you enhanced control over the value of your Lanchester leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last October Luca, started to get near to the 80-year threshold with the lease on his one bedroom flat in Lanchester. In buying his flat 19 years ago, the lease term was of no interest. Thankfully, he realised he needed to take action soon on a lease extension. Luca arranged for a lease extension just under the wire last July. Luca and the landlord who owned the flat above in the end settled on an amount of £6,000 . If he failed to meet the deadline, the sum would have become more exhorbitant by a minimum £1,000.
In 2014 we were e-mailed by Mr F Hill who, having purchased a first floor flat in Lanchester in April 1998. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Identical homes in Lanchester with 100 year plus lease were valued around £193,400. The average amount of ground rent was £65 invoiced monthly. The lease finished in 2084. Having 59 years unexpired we estimated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 plus professional charges.
Last Autumn we were contacted by Dr Charlie King , who moved into a one bedroom flat in Lanchester in September 2006. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Identical premises in Lanchester with a long lease were valued around £255,000. The average amount of ground rent was £50 invoiced per annum. The lease came to a finish on 13 January 2095. Taking into account 70 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £10,500 and £12,000 not including professional charges.