The closer a domestic lease in Lichfield nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, more than one hundred years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease without delay. Many flat owners in Lichfield will qualify for this right; that being said a conveyancing solicitor can advise whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in Lichfield with more than one hundred years left 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 premises. In such circumstances there is often little upside in 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. |
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
Irrespective of whether you are a tenant or a freeholder in Lichfield,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Lichfield valuers.
Half a year ago Callum, started to get near to the 80-year threshold with the lease on his studio apartment in Lichfield. Having bought his flat two decades ago, the lease term was of minimal significance. Thankfully, it dawned on him that he needed to take steps soon on Extending the lease. Callum extended the lease just ahead of time last March. Callum and the freeholder via the managing agents in the end agreed on a premium of £6,000 . If he failed to meet the deadline, the amount would have escalated by at least £1,150.
Dr A Adams purchased a studio flat in Lichfield in April 2000. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Identical flats in Lichfield with a long lease were in the region of £166,800. The mid-range ground rent payable was £50 collected monthly. The lease came to a finish on 6 October 2076. Considering the 50 years outstanding we estimated the premium to the landlord for the lease extension to be within £32,300 and £37,400 not including fees.
Ms P Roux took over the lease of a studio flat in Lichfield in October 2006. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Identical homes in Lichfield with a long lease were valued around £280,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease ran out on 3 September 2096. Considering the 70 years outstanding we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus fees.