Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Liss. Inevitably, the term of lease remaining reduces over time. This may slip by relatively unnoticed when the residence needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension. Eligible long lease owners in Liss have the right to extend the lease for an additional ninety years under the 1993 Leasehold Reform Act. Do give due consideration before putting off your Liss lease extension. Putting off that expense now simply increases the price you will eventually have to pay for a lease extension
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Liss can be a difficult process. We recommend you get guidance from a conveyancing solicitor and valuer with experience in this area.
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 in-depth market knowledge procuring Liss 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 protracted correspondence with the landlord of her one bedroom flat in Liss, Robyn initiated the lease extension process just as her lease was coming close to the critical eighty-year threshold. The transaction was finalised in October 2015. The landlord’s fees were kept to an absolute minimum.
Last Spring we were called by Mr and Mrs. B Clark , who moved into a basement apartment in Liss in May 1998. The question was if we could approximate the premium would be to prolong the lease by an additional years. Identical homes in Liss with a long lease were in the region of £191,400. The mid-range amount of ground rent was £55 collected quarterly. The lease lapsed on 26 July 2079. Given that there were 54 years as a residual term we approximated the premium to the landlord to extend the lease to be within £34,200 and £39,600 not including legals.
Last Winter we were contacted by Mrs Hannah Khan , who owned a first floor flat in Liss in April 1999. The question was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparable flats in Liss with an extended lease were in the region of £295,000. The mid-range ground rent payable was £45 collected per annum. The lease finished in 2099. Taking into account 74 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus costs.