Unfortunately that a Lanchester residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Lanchester property prices.Where your lease has approximately 90 years left, you need to start thinking about 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 slips under 80 years - otherwise a higher amount will be payable. The majority of leasehold owners in Lanchester will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold properties in Lanchester with more than 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Lanchester,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Lanchester valuers.
In the wake of 9 months of protracted negotiations with the landlord of her one bedroom flat in Lanchester, Lauren commenced the lease extension process as the eighty year threshold was rapidly advancing. The lease extension completed in October 2008. The freeholder’s charges were kept to an absolute minimum.
Last year we were approach by Mr Toby Davies , who owned a newly refurbished apartment in Lanchester in June 2001. The dilemma was if we could estimate the price would be to extend the lease by 90 years. Identical residencies in Lanchester with 100 year plus lease were in the region of £176,200. The mid-range amount of ground rent was £65 collected every twelve months. The lease elapsed on 16 February 2082. Given that there were 56 years unexpired we approximated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 plus professional charges.
Last Autumn we were contacted by Mr and Mrs. D Bertrand , who completed a garden flat in Lanchester in November 2004. The dilemma was if we could estimate the price would likely be to extend the lease by an additional years. Identical premises in Lanchester with a long lease were in the region of £242,600. The mid-range ground rent payable was £45 collected quarterly. The lease ran out on 2 September 2093. Considering the 67 years outstanding we estimated the premium to the landlord to extend the lease to be between £11,400 and £13,200 exclusive of professional charges.