With a domestic leasehold property in Liss, you are actually purchasing a right to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than eighty years left. Leasehold owners in Liss with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has under eighty years remaining, under the relevant legislation the landlord can calculate and demand a greater premium, based on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with undertake Liss 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.
Michael owned a high value apartment in Liss being sold with a lease of fraction over fifty eight years unexpired. Michael informally spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Michael to invoke his statutory right. Michael procured expert advice and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Last Autumn we were called by Mr K Rose , who purchased a newly refurbished apartment in Liss in April 2008. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative properties in Liss with a long lease were in the region of £250,400. The mid-range ground rent payable was £65 billed annually. The lease concluded on 5 September 2090. Considering the 64 years left we approximated the premium to the freeholder for the lease extension to be between £19,000 and £22,000 plus fees.
In 2009 we were phoned by Mr and Mrs. C Campbell who, having moved into a first floor apartment in Liss in March 2005. The question was if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparable flats in Liss with 100 year plus lease were valued around £189,000. The average ground rent payable was £55 collected monthly. The lease lapsed on 28 April 2079. Having 53 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 not including fees.