Lanchester leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Most 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 70 and 90 years remaining. There are compelling reasons why a Lanchester flat owner with a lease having around 80 years unexpired should take action to ensure that a lease extension is put in place without delay
Leasehold properties in Lanchester with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| 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. |
| 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 secure guidance from a conveyancer and surveyor 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 Lanchester lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Eliot owned a 2 bedroom flat in Lanchester being sold with a lease of just over 59 years left. Eliot on an informal basis contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Eliot to exercise his statutory right. Eliot obtained expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Mr and Mrs. R Nguyen completed a first floor flat in Lanchester in November 2006. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Similar homes in Lanchester with 100 year plus lease were valued about £250,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease finished on 21 April 2095. Considering the 69 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.
Last Christmas we were approach by Dr J Lefèvre , who took over the lease of a recently refurbished flat in Lanchester in January 2009. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Similar residencies in Lanchester with an extended lease were worth £290,000. The average amount of ground rent was £60 collected yearly. The lease ended in 2106. Considering the 80 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus legals.