The nearer a residential lease in Lavenham nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, beyond 100 years to run then this decrease may be fractional that being said there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner as opposed to later. Most flat owners in Lavenham will meet the qualifying criteria; nevertheless a lawyer will be able to confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you better control over the value of your Lavenham leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
William was the the leasehold owner of a high value apartment in Lavenham being marketed with a lease of fraction over sixty years left. William on an informal basis spoke with his landlord a well known local-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were William to exercise his statutory right. William obtained expert legal guidance and was able to make an informed decision and deal with the matter and sell the flat.
Ms Catherine Reed purchased a one bedroom flat in Lavenham in January 2006. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Comparative residencies in Lavenham with a long lease were in the region of £254,200. The average amount of ground rent was £60 invoiced annually. The lease ran out in 2076. Given that there were 51 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £43,700 and £50,600 plus expenses.
Dr Lucas Richardson purchased a purpose-built apartment in Lavenham in February 2009. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Similar properties in Lavenham with an extended lease were in the region of £210,600. The mid-range ground rent payable was £45 collected yearly. The lease terminated on 1 September 2087. Taking into account 62 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 not including costs.