Owning a apartment usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Lixwm. Clearly, the term of lease left reduces over time. This may slip by relatively unnoticed when the flat or house needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Eligible long lease owners in Lixwm have the right to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Please give careful deliberation before delaying your Lixwm lease extension. Holding off that expense now likely increases the price you will ultimately incur for a lease extension
Leasehold residencies in Lixwm with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Lixwm,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Lixwm valuers.
Subsequent to unsuccessful negotiations with the freeholder of her purpose-built flat in Lixwm, Daisy started the lease extension process just as her lease was coming close to the critical 80-year threshold. The transaction completed in September 2015. The landlord’s charges were negotiated to below 500 GBP.
In 2009 we were approached by Mr R Johnson who, having took over the lease of a garden apartment in Lixwm in March 2012. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical flats in Lixwm with an extended lease were valued about £265,000. The average ground rent payable was £50 invoiced yearly. The lease elapsed on 10 October 2099. Having 74 years left we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.
Last August we were phoned by Mr and Mrs. J Díaz , who bought a first floor flat in Lixwm in February 2007. The question was if we could estimate the premium would likely be to extend the lease by an additional years. Similar flats in Lixwm with a long lease were worth £166,400. The mid-range amount of ground rent was £60 collected quarterly. The lease elapsed on 26 August 2079. Considering the 54 years remaining we approximated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 not including expenses.