As the the remaining lease term of a Littleborough domestic lease lessens so does its value and therefore the value of your property. Where the residual term has, beyond 99 years to run then this decrease may be of little impact that being said there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease sooner than later. The majority of flat owners in Littleborough will meet the qualifying criteria; however a conveyancing solicitor will be able to advise if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Littleborough with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Using our service gives you enhanced control over the value of your Littleborough 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.
During the course of the last few months Finley, came critically close to the 80-year mark with the lease on his basement flat in Littleborough. Having bought his home two decades ago, the length of the lease was of no significance. As luck would have it, he became aware that he needed to take steps soon on Extending the lease. Finley arranged for a lease extension just under the wire last July. Finley and the freeholder via the management company ultimately settled on a premium of £5,500 . If the lease had dipped below 80 years, the sum would have become more exhorbitant by a minimum £875.
Mr and Mrs. H Clark owned a purpose-built flat in Littleborough in October 2008. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparative premises in Littleborough with 100 year plus lease were in the region of £260,000. The average ground rent payable was £50 invoiced annually. The lease concluded on 19 May 2096. Taking into account 71 years remaining we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of expenses.
Last year we were phoned by Dr F Jackson , who moved into a basement flat in Littleborough in July 2010. The question was if we could approximate the price would likely be for a 90 year lease extension. Comparative properties in Littleborough with an extended lease were worth £254,200. The mid-range ground rent payable was £60 collected yearly. The lease ended in 2076. Taking into account 51 years unexpired we estimated the compensation to the landlord for the lease extension to be between £43,700 and £50,600 not including legals.