Lixwm leases on residential properties are gradually losing value. if your lease has about 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 dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in Lixwm will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Lixwm can be a difficult process. We recommend you procure professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Lixwm lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Jacob, started to get close to the 80-year threshold with the lease on his first floor apartment in Lixwm. Having bought his flat two decades ago, the lease term was of minimal bearing. Thankfully, he realised he would soon be paying an escalated premium for a lease extension. Jacob extended the lease just ahead of time in March. Jacob and the landlord who owned the flat above in the end settled on an amount of £5,500 . If the lease had slid to less than 80 years, the amount would have become more costly by at least £1,125.
In 2014 we were called by Mr and Mrs. T Thompson who, having owned a one bedroom apartment in Lixwm in April 2003. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative homes in Lixwm with an extended lease were worth £168,800. The average amount of ground rent was £60 collected every twelve months. The lease finished on 8 October 2080. Considering the 55 years unexpired we calculated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 plus expenses.
Dr N Martínez completed a recently refurbished apartment in Lixwm in November 2005. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a 90 year extension to my lease. Comparable homes in Lixwm with 100 year plus lease were valued about £235,200. The average amount of ground rent was £45 collected quarterly. The lease finished in 2091. Given that there were 66 years left we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.