Owning a flat usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Lifton. Inevitably, the period of lease left shortens as time goes by. This is often overlooked and only becomes a problem when the flat or house needs to be sold or refinanced. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension. Qualifying long lease owners in Lifton have the right to extend the lease for a further 90 years in accordance with statute. You should give due deliberation before delaying your Lifton lease extension. Putting off the cost now only increases the price you will eventually incur to extend your lease
It is generally accepted that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the property will be equivalent in value to 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. |
| Bank of Scotland | 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. |
| 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 Lifton can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in lease extensions.
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 Lifton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Zachary, came critically close to the 80-year mark with the lease on his leasehold apartment in Lifton. In buying his home two decades ago, the lease term was of little bearing. Fortunately, he realised he needed to take steps soon on a lease extension. Zachary arranged for a lease extension at the eleventh hour in January. Zachary and the landlord who owned the flat above eventually settled on a premium of £5,000 . If the lease had slipped below 80 years, the premium would have become more costly by a minimum £1,075.
In 2013 we were phoned by Mr and Mrs. A Rose who, having bought a one bedroom flat in Lifton in January 2002. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical flats in Lifton with a long lease were valued about £208,200. The mid-range amount of ground rent was £65 collected per annum. The lease expiry date was on 14 February 2086. Considering the 61 years unexpired we estimated the premium to the landlord to extend the lease to be within £20,000 and £23,000 plus costs.
In 2009 we were called by Mr and Mrs. A Dupont who, having completed a one bedroom apartment in Lifton in March 1998. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Identical premises in Lifton with 100 year plus lease were in the region of £260,000. The mid-range ground rent payable was £50 billed monthly. The lease expiry date was on 23 November 2097. Taking into account 72 years left we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.