The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Liss can extend the lease for a further ninety years in accordance with statute. Please think carefully before delaying your Liss lease extension. Shelving the costs today simply increases the amount you will eventually be required to pay for a lease extension.
Leasehold premises in Liss with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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 |
Using our service gives you better control over the value of your Liss leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Christmas Tyler, started to get near to the 80-year mark with the lease on his two bedroom apartment in Liss. Having purchased his property 19 years ago, the lease term was of no bearing. Luckily, he noticed he would soon be paying way over the odds for a lease extension. Tyler extended the lease at the eleventh hour last September. Tyler and the landlord who owned the flat above eventually settled on an amount of £6,000 . If the lease had dropped below 80 years, the amount would have escalated by at least £1,125.
Last Summer we were called by Mr G Lefebvre , who acquired a one bedroom flat in Liss in August 2012. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by a further 90 years. Comparative properties in Liss with a long lease were valued about £285,000. The mid-range ground rent payable was £45 invoiced per annum. The lease finished on 2 September 2097. Given that there were 71 years remaining we approximated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including legals.
Last Autumn we were called by Ms T Ricardo , who owned a ground floor flat in Liss in March 2009. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Similar premises in Liss with 100 year plus lease were valued around £225,800. The average ground rent payable was £60 collected quarterly. The lease concluded on 11 June 2086. Considering the 60 years remaining we calculated the compensation to the landlord to extend the lease to be between £24,700 and £28,600 plus costs.