Owning a apartment usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Littleport. Inevitably, the term of lease remaining reduces as time goes by. This may pass by relatively unnoticed when the residence needs to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension. Eligible long lease owners in Littleport have the legal entitlement to extend the lease for an additional 90 years in accordance with legislation. Please give careful attention before delaying your Littleport lease extension. Holding off the cost now likely increases the price you will ultimately have to pay for a lease extension
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 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| 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 are not acceptable. 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. |
| 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. |
The conveyancers that we work with undertake Littleport lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
In recent months Jayden, started to get near to the 80-year mark with the lease on his leasehold flat in Littleport. Having purchased his property 19 years previously, the length of the lease was of minimal significance. Fortunately, he recognised he needed to take action soon on Extending the lease. Jayden extended the lease just ahead of time last September. Jayden and the landlord who owned the flat above ultimately settled on the final figure of £5,500 . If he had missed the deadline, the sum would have increased by at least £975.
In 2014 we were called by Mrs C Jones who, having was assigned a lease of a basement apartment in Littleport in July 1999. We are asked if we could approximate the price would likely be for a ninety year lease extension. Similar properties in Littleport with 100 year plus lease were in the region of £191,400. The average ground rent payable was £55 invoiced annually. The lease expired on 26 August 2080. Having 54 years left we approximated the premium to the landlord to extend the lease to be within £34,200 and £39,600 not including fees.
Last year we were phoned by Dr Finn Rodríguez , who took over the lease of a ground floor flat in Littleport in March 1995. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Comparable premises in Littleport with 100 year plus lease were in the region of £295,000. The mid-range ground rent payable was £45 collected every twelve months. The lease lapsed in 2100. Given that there were 74 years remaining we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.