The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Leominster have the right to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Please think carefully before delaying your Leominster lease extension. Putting off that expense now simply increases the amount you will ultimately be required to pay to extend the lease.
Leasehold properties in Leominster with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant 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. |
| Coventry Building Society | 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. |
| 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. |
| 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 Leominster,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Leominster valuers.
In 2014 Leo, started to get near to the eighty-year threshold with the lease on his two bedroom flat in Leominster. Having bought his property 19 years previously, the length of the lease was of no significance. Thankfully, he realised he would soon be paying way over the odds for a lease extension. Leo arranged for a lease extension just in the nick of time last August. Leo and the freeholder via the managing agents in the end settled on the final figure of £6,000 . If the lease had fallen lower than 80 years, the premium would have become more costly by a minimum £875.
In 2010 we were phoned by Dr M Clarke who, having completed a one bedroom flat in Leominster in September 2006. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Comparative properties in Leominster with 100 year plus lease were valued about £200,000. The average ground rent payable was £50 collected monthly. The lease finished on 18 January 2104. Given that there were 78 years outstanding we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus costs.
Mr and Mrs. F Jackson bought a first floor apartment in Leominster in March 1995. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Identical properties in Leominster with a long lease were in the region of £267,600. The average amount of ground rent was £65 invoiced annually. The lease end date was on 9 January 2093. Given that there were 67 years remaining we calculated the premium to the landlord to extend the lease to be between £14,300 and £16,400 exclusive of expenses.