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 fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Liphook. Inevitably, the length of lease remaining reduces over time. This is often ignored and only raises itself as an issue when the residence has to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension. Eligible long lease owners in Liphook have the right to extend the lease for an additional ninety years in accordance with legislation. Do give due deliberation before putting off your Liphook lease extension. Putting off that expense now only increases the price you will ultimately incur for a lease extension
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barnsley Building Society | |
| Halifax | |
| Virgin |
The conveyancing solicitors that we work with procure Liphook lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Kai owned a 2 bedroom apartment in Liphook on the market with a lease of just over 72 years left. Kai on an informal basis approached his freeholder being a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Kai to exercise his statutory right. Kai obtained expert legal guidance and secured an acceptable deal informally and readily saleable.
In 2014 we were called by Mr and Mrs. G Lambert who, having was assigned a lease of a first floor flat in Liphook in January 1997. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Similar homes in Liphook with an extended lease were in the region of £198,800. The average ground rent payable was £55 billed quarterly. The lease expired on 17 July 2081. Given that there were 55 years left we calculated the premium to the freeholder for the lease extension to be between £33,300 and £38,400 plus professional charges.
In 2011 we were called by Ms Rebecca Gómez who, having bought a newly refurbished apartment in Liphook in May 1998. The question was if we could estimate the price would be to extend the lease by an additional years. Similar residencies in Liphook with a long lease were in the region of £295,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease expired on 2 February 2101. Considering the 75 years remaining we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including professional charges.