Littleport leases on domestic deteriorating in value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. If lease term is less than eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Littleport will mostly qualify for a lease extension; however a solicitor will confirm your eligibility. In some circumstances you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced so it’s best to be guided by a lawyer during the process.
It is generally considered that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Using our service will provide you better control over the value of your Littleport leasehold, as your property will be more valuable and marketable in respect of lease length should you want 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 year Austin, started to get close to the 80-year threshold with the lease on his basement flat in Littleport. Having purchased his home two decades ago, the lease term was of no relevance. Luckily, he realised he needed to take action soon on a lease extension. Austin extended the lease just in the nick of time in August. Austin and the freeholder via the managing agents ultimately settled on a premium of £6,000 . If he failed to meet the deadline, the amount would have increased by at least £1,050.
In 2009 we were approached by Mr and Mrs. J Green who, having purchased a newly refurbished apartment in Littleport in September 2007. We are asked if we could estimate the premium could be to extend the lease by ninety years. Comparable flats in Littleport with a long lease were in the region of £205,000. The average amount of ground rent was £50 billed every twelve months. The lease expired on 5 October 2105. Given that there were 79 years left we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including legals.
Last October we were approach by Dr Tia Dupont , who bought a newly refurbished flat in Littleport in February 1998. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparative homes in Littleport with 100 year plus lease were valued about £275,000. The average ground rent payable was £65 invoiced annually. The lease ended on 8 October 2094. Considering the 68 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including fees.