Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Lavenham. Inevitably, the length of lease remaining shortens over time. This is often ignored and only becomes a problem when the flat or house has to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension. Eligible long lease owners in Lavenham have the legal entitlement to extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. You should give careful consideration before putting off your Lavenham lease extension. Putting off the cost now simply increases the price you will ultimately have to pay to extend your lease
Leasehold premises in Lavenham with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Regardless of whether you are a tenant or a landlord in Lavenham,the lease extension experts 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 Lavenham valuers.
Last October Dylan, started to get close to the 80-year threshold with the lease on his two bedroom flat in Lavenham. Having purchased his property 19 years ago, the lease term was of no significance. As luck would have it, he became aware that he would imminently be paying an escalated premium for Extending the lease. Dylan arranged for a lease extension just under the wire in September. Dylan and the landlord subsequently settled on the final figure of £5,000 . If he failed to meet the deadline, the price would have become more costly by at least £950.
Last August we were e-mailed by Dr Jayden Hall , who bought a studio apartment in Lavenham in July 2004. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Identical premises in Lavenham with an extended lease were in the region of £200,800. The mid-range ground rent payable was £65 collected yearly. The lease concluded on 6 March 2086. Taking into account 60 years remaining we approximated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 plus fees.
Last Spring we were contacted by Ms Hollie Roberts , who moved into a one bedroom flat in Lavenham in July 2005. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Similar premises in Lavenham with 100 year plus lease were valued around £255,000. The mid-range amount of ground rent was £50 collected quarterly. The lease termination date was on 10 March 2097. Given that there were 71 years remaining we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.