Lapworth leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Lapworth enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Lapworth you would be well advised to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold residencies in Lapworth with more than 100 years unexpired on the lease are often 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 purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| Halifax | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Lapworth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
After lengthy negotiations with the freeholder of her two bedroom apartment in Lapworth, Katherine commenced the lease extension process just as the lease was approaching the critical 80-year mark. The legal work was concluded in June 2009. The freeholder’s fees were kept to an absolute minimum.
In 2009 we were called by Mr and Mrs. U Kelly who, having completed a purpose-built flat in Lapworth in July 2000. The question was if we could estimate the premium would be to prolong the lease by ninety years. Comparable premises in Lapworth with a long lease were in the region of £250,000. The mid-range ground rent payable was £50 billed yearly. The lease terminated on 27 June 2095. Taking into account 69 years outstanding we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.
In 2009 we were contacted by Mrs R Lefebvre who, having bought a one bedroom apartment in Lapworth in November 2009. We are asked if we could approximate the price could be for a ninety year extension to my lease. Similar homes in Lapworth with a long lease were valued about £290,000. The average amount of ground rent was £60 collected quarterly. The lease came to a finish in 2106. Considering the 80 years outstanding we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including expenses.