It’s an underpublicised certainty that a Leamington Spa residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Leamington Spa property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher amount will be due. Most leasehold owners in Leamington Spa will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the formalities.
It is generally accepted that a residential leasehold with in excess of 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 residence will be worth the same as a freehold for many years in the future.
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Leamington Spa can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Leamington Spa lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Luke, came perilously close to the eighty-year threshold with the lease on his garden apartment in Leamington Spa. Having bought his property two decades ago, the length of the lease was of minimal interest. As luck would have it, he noticed he needed to take steps soon on Extending the lease. Luke was able to extend his lease at the eleventh hour last May. Luke and the landlord eventually settled on sum of £6,000 . If the lease had fallen below eighty years, the premium would have escalated by at least £950.
In 2009 we were e-mailed by Dr G Moreau who, having bought a first floor flat in Leamington Spa in February 2012. We are asked if we could estimate the price could be for a 90 year lease extension. Comparative premises in Leamington Spa with 100 year plus lease were in the region of £254,200. The average ground rent payable was £60 collected per annum. The lease finished on 20 April 2076. Taking into account 51 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £43,700 and £50,600 not including fees.
In 2012 we were e-mailed by Dr L Torres who, having acquired a garden apartment in Leamington Spa in May 2010. The question was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Similar properties in Leamington Spa with a long lease were in the region of £210,600. The average ground rent payable was £45 invoiced quarterly. The lease concluded in 2087. Taking into account 62 years remaining we calculated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 not including fees.