The closer a residential lease in Littleport nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, more than one hundred years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Most flat owners in Littleport will meet the qualifying criteria; nevertheless a conveyancing solicitor will be able to advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted 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 |
|---|---|
| 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. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your Littleport leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted discussions with the landlord of her two bedroom flat in Littleport, Kate initiated the lease extension process just as the lease was coming close to the all-important 80-year deadline. The lease extension completed in June 2009. The freeholder’s charges were restricted to slightly above 550 GBP.
Last month we were approach by Mr and Mrs. R Norbert , who moved into a basement flat in Littleport in July 2011. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Identical premises in Littleport with a long lease were valued about £225,800. The mid-range amount of ground rent was £60 billed monthly. The lease terminated in 2086. Taking into account 60 years left we calculated the premium to the landlord for the lease extension to be between £23,800 and £27,400 not including professional charges.
Ms Amy Petit completed a one bedroom apartment in Littleport in February 1996. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable flats in Littleport with 100 year plus lease were valued around £210,000. The mid-range ground rent payable was £50 billed yearly. The lease terminated on 4 April 2106. Given that there were 80 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.