Unfortunately that a Lichfield residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Lichfield property prices.Once your lease nears 85ish years, you should 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 slips under 80 years - otherwise a higher amount will be payable. The majority of leasehold owners in Lichfield will be able to extend under the legislation; however a lawyer will 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 lawyer for the duration of the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Lichfield can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer 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 a wealth of experience dealing with Lichfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Finley was the the leasehold proprietor of a high value flat in Lichfield being sold with a lease of a few days over sixty years outstanding. Finley informally spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Finley to invoke his statutory right. Finley obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Last Winter we were contacted by Mr A Clarke , who purchased a studio apartment in Lichfield in November 2004. The dilemma was if we could approximate the price would likely be to extend the lease by ninety years. Similar flats in Lichfield with a long lease were valued around £196,400. The average ground rent payable was £55 invoiced monthly. The lease ran out in 2079. Having 54 years remaining we calculated the compensation to the freeholder to extend the lease to be within £35,200 and £40,600 exclusive of professional charges.
Last Christmas we were phoned by Mr and Mrs. A Gómez , who owned a basement apartment in Lichfield in March 1997. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical premises in Lichfield with a long lease were in the region of £295,000. The mid-range ground rent payable was £45 collected quarterly. The lease finished in 2099. Taking into account 74 years outstanding we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.