The market value of a leasehold property in Lechlade is impacted by how long the lease has remaining. If it is near to or fewer than 80 years you should envisage difficulties on re-sale, so it is advisable to arrange for a lease extension before buying. It is preferable to start the lease extension process when a lease still has 82 years remaining so that all matters can be addressed in advance of the eighty year mark. Statute enables Lechlade qualifying lessees to obtain a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Lechlade with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with handle Lechlade 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 lawyer we work with provide it.
In 2014 Evan, came precariously close to the 80-year mark with the lease on his garden flat in Lechlade. Having purchased his property two decades ago, the lease term was of no significance. by good luck, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Evan arranged for a lease extension just ahead of time in September. Evan and the freeholder via the management company subsequently agreed on an amount of £5,500 . If he had missed the deadline, the premium would have increased by at least £1,025.
In 2013 we were contacted by Mr and Mrs. N Clarke who, having acquired a ground floor apartment in Lechlade in May 2004. The question was if we could approximate the premium would likely be for a 90 year lease extension. Similar homes in Lechlade with a long lease were in the region of £225,400. The average ground rent payable was £45 collected annually. The lease elapsed on 6 March 2090. Having 64 years left we estimated the compensation to the landlord to extend the lease to be within £15,200 and £17,600 plus costs.
Mr and Mrs. I Davies acquired a studio flat in Lechlade in January 2000. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Comparable premises in Lechlade with an extended lease were in the region of £270,000. The mid-range amount of ground rent was £55 collected quarterly. The lease concluded in 2101. Considering the 75 years left we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus costs.