Unfortunately that a Littleport residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Littleport property prices.Once your lease gets to 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher premium will be due. Most leasehold owners in Littleport will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer for the duration of the formalities.
It is generally considered that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Godiva Mortgages | |
| Santander | |
| Virgin |
Engaging our service gives you enhanced control over the value of your Littleport leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Hugo owned a conversion flat in Littleport on the market with a lease of a little over sixty years outstanding. Hugo informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Hugo to exercise his statutory right. Hugo procured expert advice and secured satisfactory resolution without going to tribunal and sell the flat.
In 2009 we were contacted by Dr Connor Dupont who, having acquired a purpose-built flat in Littleport in September 1998. The question was if we could approximate the price would be for a 90 year lease extension. Comparative flats in Littleport with an extended lease were valued around £198,800. The mid-range amount of ground rent was £55 billed every twelve months. The lease elapsed in 2081. Considering the 55 years remaining we calculated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 exclusive of costs.
In 2012 we were approached by Mr P Petit who, having acquired a purpose-built apartment in Littleport in April 2002. The question was if we could estimate the premium could be to extend the lease by a further 90 years. Similar homes in Littleport with 100 year plus lease were valued about £295,000. The average amount of ground rent was £50 invoiced quarterly. The lease terminated on 27 March 2101. Considering the 75 years unexpired we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of costs.