Unfortunately that a Lifton residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Lifton property market.Once your lease gets to 85ish years, you need to 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 dips below 80 years - otherwise a higher amount will be due. The majority of flat owners in Lifton will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, 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. |
| 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. |
| Godiva Mortgages | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a landlord in Lifton,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Lifton valuers.
Trailing protracted negotiations with the freeholder of her ground floor apartment in Lifton, Courtney started the lease extension process as the 80 year threshold was fast coming. The legal work was concluded in August 2010. The landlord’s fees were negotiated to less than five hundred GBP.
In 2014 we were contacted by Ms U Evans who, having acquired a garden flat in Lifton in May 2010. The question was if we could approximate the premium would be to prolong the lease by an additional years. Comparative premises in Lifton with a long lease were in the region of £193,400. The mid-range ground rent payable was £65 billed annually. The lease elapsed in 2085. Taking into account 59 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 not including expenses.
Mr and Mrs. A Allen purchased a purpose-built apartment in Lifton in January 2003. The question was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparable flats in Lifton with an extended lease were valued about £255,000. The mid-range ground rent payable was £50 billed per annum. The lease ran out on 2 May 2096. Having 70 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £10,500 and £12,000 plus expenses.