As the the remaining lease term of a Lavenham domestic lease lessens so does its value and therefore the value of your property. Where the lease has, in excess of 125 years to run then this decrease may be negligible however there will become a point in time when a lease has fewer 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 rational as to why you should consider extending without delay. Many 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 frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you better control over the value of your Lavenham leasehold, as your property will be more valuable and marketable in relation to the 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.
Subsequent to unsuccessful negotiations with the landlord of her purpose-built apartment in Lavenham, Isabella commenced the lease extension process just as her lease was nearing the all-important 80-year threshold. The transaction was concluded in June 2011. The landlord’s costs were kept to an absolute minimum.
In 2011 we were phoned by Dr J Anderson who, having completed a first floor flat in Lavenham in April 2011. The question was if we could estimate the price would likely be to prolong the lease by an additional years. Identical homes in Lavenham with 100 year plus lease were in the region of £186,000. The mid-range amount of ground rent was £65 invoiced annually. The lease ran out on 5 March 2084. Considering the 58 years left we estimated the compensation to the freeholder for the lease extension to be within £24,700 and £28,600 plus costs.
In 2010 we were approached by Mr E Roux who, having purchased a basement flat in Lavenham in September 1995. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable flats in Lavenham with 100 year plus lease were in the region of £250,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease ran out on 22 June 2095. Considering the 69 years left we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including legals.