Unfortunately that a Liphook residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the Liphook property market.Once your lease nears 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 falls lower than eighty years - otherwise a higher premium will be payable. Most leasehold owners in Liphook will be able to extend under the legislation; however a conveyancer will be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your lawyer from beginning to end of the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Liphook can be a difficult process. We recommend you secure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 Liphook lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful negotiations with the landlord of her one bedroom flat in Liphook, Emma initiated the lease extension process just as the lease was nearing the crucial eighty-year deadline. The lease extension was concluded in July 2009. The freeholder’s charges were kept to an absolute minimum.
Last March we were called by Mr A Green , who acquired a basement flat in Liphook in August 2006. We are asked if we could approximate the premium could be to extend the lease by 90 years. Comparable residencies in Liphook with a long lease were worth £225,800. The average amount of ground rent was £60 billed quarterly. The lease expiry date was on 23 August 2085. Considering the 60 years left we calculated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 plus professional charges.
Mrs Sophia Sharif completed a one bedroom flat in Liphook in August 2007. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Comparative flats in Liphook with an extended lease were worth £210,000. The average ground rent payable was £50 collected every twelve months. The lease lapsed in 2105. Having 80 years left we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including fees.