Chances are that if you own a flat in Liphook you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
The lawyers that we work with undertake 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 lawyer we work with provide it.
Off the back of lengthy correspondence with the landlord of her basement apartment in Liphook, Laura started the lease extension process as the eighty year deadline was rapidly advancing. The transaction completed in November 2010. The freeholder’s costs were restricted to about six hundred pounds.
Ms Isabella Mason acquired a ground floor apartment in Liphook in March 2012. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable flats in Liphook with 100 year plus lease were in the region of £166,800. The average amount of ground rent was £50 invoiced quarterly. The lease came to a finish on 20 August 2076. Considering the 50 years unexpired we estimated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 not including costs.
In 2014 we were phoned by Mr and Mrs. N Ali who, having bought a first floor flat in Liphook in January 2004. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Identical premises in Liphook with 100 year plus lease were valued about £280,000. The mid-range ground rent payable was £45 billed yearly. The lease ran out in 2096. Having 70 years unexpired we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of costs.