Littleborough leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Most owners of residential leasehold property in Littleborough enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Littleborough you would be well advised to check if your lease has between seventy and 90 years remaining. There are compelling reasons why a Littleborough leaseholder with a lease having around 80 years unexpired should take steps to ensure that a lease extension is put in place without delay
Leasehold residencies in Littleborough with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth 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 service charges warrant 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. |
| 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; |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Littleborough,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Littleborough valuers.
Subsequent to unsuccessful negotiations with the landlord of her basement apartment in Littleborough, Rosie started the lease extension process as the eighty year deadline was fast coming. The transaction completed in April 2005. The landlord’s costs were kept to an absolute minimum.
Last year we were approach by Ms B Mason , who took over the lease of a studio apartment in Littleborough in January 2009. We are asked if we could approximate the price would be to prolong the lease by ninety years. Identical premises in Littleborough with 100 year plus lease were worth £261,600. The average ground rent payable was £60 invoiced monthly. The lease ended on 4 June 2077. Having 52 years unexpired we approximated the compensation to the landlord for the lease extension to be between £39,000 and £45,000 exclusive of fees.
In 2011 we were phoned by Ms Emma Ricardo who, having bought a first floor apartment in Littleborough in March 2008. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical properties in Littleborough with 100 year plus lease were in the region of £218,000. The average ground rent payable was £45 billed every twelve months. The lease terminated on 1 July 2088. Having 63 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £17,100 and £19,800 not including legals.