Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Limbury. Inevitably, the length of lease left reduces over time. This may slip by relatively unnoticed when the property has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Limbury have the right to extend the lease for an additional 90 years in accordance with statute. Do give careful deliberation before delaying your Limbury lease extension. Holding off that expense now simply increases the price you will ultimately incur to extend your lease
It is generally considered that a residential leasehold 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 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. |
| Chelsea 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Limbury can be a difficult process. We recommend you secure guidance from a conveyancer 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 in-depth market knowledge procuring Limbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Lucas, came dangerously close to the 80-year mark with the lease on his basement flat in Limbury. Having bought his home 19 years previously, the lease term was of no importance. Luckily, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Lucas was able to extend his lease just ahead of time in January. Lucas and the landlord who owned the flat above in the end settled on a premium of £5,000 . If the lease had dipped below eighty years, the premium would have become more exhorbitant by at least £1,000.
Mr and Mrs. H Bonnet owned a one bedroom flat in Limbury in April 2006. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Identical residencies in Limbury with 100 year plus lease were valued around £246,800. The mid-range ground rent payable was £60 collected every twelve months. The lease concluded in 2075. Taking into account 50 years left we estimated the compensation to the landlord for the lease extension to be between £44,700 and £51,600 plus fees.
In 2014 we were phoned by Dr C Roberts who, having was assigned a lease of a first floor flat in Limbury in August 2010. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by ninety years. Similar flats in Limbury with a long lease were in the region of £203,200. The mid-range amount of ground rent was £65 collected every twelve months. The lease ran out on 26 June 2086. Having 61 years left we calculated the premium to the landlord to extend the lease to be within £19,000 and £22,000 not including professional charges.