There is no doubt about it a leasehold property in Lanchester is a wasting asset as a result of the shortening lease. Where the lease has, in excess of 99 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. Most flat owners in Lanchester will qualify for this right; however a conveyancer will be able to advise whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold residencies in Lanchester with over one hundred years left 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 to be gained by buying the freehold unless savings on ground rent and service charges justify 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Lanchester,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Lanchester valuers.
Mason was the the leasehold proprietor of a conversion apartment in Lanchester being sold with a lease of just over 59 years outstanding. Mason on an informal basis spoke with his landlord a well known Manchester-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Mason to invoke his statutory right. Mason procured expert advice and secured an acceptable resolution without resorting to tribunal and readily saleable.
Mr and Mrs. A André purchased a basement apartment in Lanchester in January 2009. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Similar homes in Lanchester with 100 year plus lease were valued around £265,000. The average ground rent payable was £50 billed annually. The lease termination date was in 2099. Having 73 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.
In 2013 we were approached by Mr D Cook who, having was assigned a lease of a ground floor flat in Lanchester in November 1996. We are asked if we could estimate the price could be to prolong the lease by an additional years. Identical homes in Lanchester with 100 year plus lease were in the region of £264,000. The average amount of ground rent was £60 invoiced monthly. The lease terminated in 2079. Taking into account 53 years outstanding we calculated the premium to the freeholder for the lease extension to be within £37,100 and £42,800 exclusive of expenses.