Littleport leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you start paying an additional element called marriage value. Leasehold owners in Littleport will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In certain situations you may not be entitled. There are prescribed deadlines and steps to comply with once the process has started so it’s wise to be guided by a lawyer during the process.
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to 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. |
| 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 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. |
| 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. |
Retaining our service gives you increased control over the value of your Littleport leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Nathaniel, started to get near to the 80-year threshold with the lease on his purpose- built apartment in Littleport. Having purchased his flat 19 years previously, the lease term was of minimal significance. As luck would have it, he became aware that he would soon be paying way over the odds for Extending the lease. Nathaniel extended the lease just ahead of time in July. Nathaniel and the freeholder via the management company in the end settled on sum of £5,500 . If he failed to meet the deadline, the amount would have escalated by at least £850.
Dr Ollie Bernard took over the lease of a one bedroom flat in Littleport in January 1995. The question was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparable flats in Littleport with 100 year plus lease were valued around £240,600. The mid-range ground rent payable was £60 billed per annum. The lease ran out in 2088. Given that there were 62 years outstanding we estimated the premium to the landlord to extend the lease to be within £21,900 and £25,200 plus professional charges.
Mr V Mason owned a purpose-built flat in Littleport in January 2006. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative premises in Littleport with a long lease were valued about £174,200. The average amount of ground rent was £55 invoiced annually. The lease came to a finish in 2077. Given that there were 51 years unexpired we approximated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of costs.