There is no doubt about it a leasehold flat or house in Lichfield is a wasting asset as a result of the diminishing lease term. If the residual term has, over one hundred years to run then this decrease may be negligible however there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending sooner than later. The majority of flat owners in Lichfield will qualify for this right; however a conveyancing solicitor should be able to advise if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Lichfield,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Lichfield valuers.
Isaac was the the leasehold owner of a conversion flat in Lichfield on the market with a lease of a little over sixty years outstanding. Isaac informally approached his freeholder a well known Bristol-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 rise in the rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Isaac to invoke his statutory right. Isaac procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2014 we were called by Mr D Adams who, having bought a one bedroom flat in Lichfield in March 1996. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparative residencies in Lichfield with an extended lease were in the region of £233,200. The mid-range ground rent payable was £60 collected per annum. The lease ran out in 2086. Having 61 years remaining we calculated the premium to the landlord to extend the lease to be within £22,800 and £26,400 exclusive of professional charges.
In 2009 we were approached by Mr and Mrs. A Mason who, having took over the lease of a first floor apartment in Lichfield in March 2001. The dilemma was if we could estimate the price would be to prolong the lease by 90 years. Comparative properties in Lichfield with a long lease were in the region of £171,800. The mid-range ground rent payable was £55 collected yearly. The lease came to a finish in 2075. Given that there were 50 years left we calculated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 plus expenses.