Leyland Lease Extension - Free Consultation

Before you progress with your lease extension in Leyland
Get a quote from one of our lease extension experts with over 20 years experience.

Let them guide you for FREE on the various options available to you.

It may end up saving you thousands.

Why you should commence your Leyland lease extension

Why you should commence your Leyland lease extension today:

Increase your lease and increase your Leyland property value

The market value of Leyland leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate materialy once the remaining term is below than eighty years

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for decades to come.

Banks and Building Societies may not loan monies on a short lease

Mortgage companies are really restricting their approach as regards to homes in Leyland with short leases. For example you might discover that their lending criteria are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so where you wanted to sell, your only options would be to find a cash purchaser, or hope for the best at auction thus reducing the number of prospective buyers.

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.
Skipton Building Society 85 years from the date of completion of the mortgage

For Buy to Let cases:
- lettings must not breach any of the lessee’s covenants; and
- consent of the lessor to lettings must be obtained if necessary
TSB Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption.
Royal Bank of Scotland Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower.

Get in touch with one of our Leyland lease extension solicitors or enfranchisement solicitors

Using our service gives you increased control over the value of your Leyland leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Leyland Lease Extension Case Studies:

Joseph, Leyland, Lancashire,

Joseph was the the leasehold proprietor of a studio flat in Leyland on the market with a lease of a few days over 72 years unexpired. Joseph on an informal basis spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Joseph to exercise his statutory right. Joseph obtained expert legal guidance and was able to make an informed decision and handle with the matter and sell the flat.

Leyland case:

Last February we were called by Mr and Mrs. H Lefèvre , who completed a basement flat in Leyland in June 2009. The question was if we could shed any light on how much (roughly) premium would likely be to extend the lease by ninety years. Comparative flats in Leyland with 100 year plus lease were valued about £225,800. The average amount of ground rent was £60 collected quarterly. The lease concluded in 2082. Given that there were 60 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £25,700 and £29,600 not including fees.

Leyland case:

In 2011 we were approached by Mr and Mrs. I Phillips who, having took over the lease of a first floor flat in Leyland in October 2010. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by ninety years. Similar residencies in Leyland with an extended lease were worth £210,000. The average amount of ground rent was £50 billed annually. The lease ended in 2102. Having 80 years as a residual term we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus professional charges.