The re-sale value of a leasehold property in Lixwm is impacted by how long the lease has left to run. If it is near to or less than eighty years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension before purchasing. It is preferable to start the lease extension process when a lease still has 82 years unexpired so that a lease extension can be concluded prior to the eighty year mark. Current legislation entitles Lixwm qualifying lessees to an additional term of ninety years in addition to the remaining term, at a nominal rent (zero ground rent). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Lixwm with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Lixwm 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.
Off the back of unsuccessful negotiations with the freeholder of her basement apartment in Lixwm, Nicole initiated the lease extension process as the eighty year deadline was rapidly coming. The transaction was concluded in June 2006. The landlord’s charges were kept to an absolute minimum.
Last Summer we were contacted by Ms V Sharif , who took over the lease of a ground floor apartment in Lixwm in September 1997. We are asked if we could approximate the price would be to prolong the lease by ninety years. Similar properties in Lixwm with a long lease were worth £255,000. The mid-range ground rent payable was £50 collected every twelve months. The lease expired on 10 September 2097. Taking into account 71 years unexpired we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.
In 2013 we were called by Mr and Mrs. R Díaz who, having moved into a one bedroom flat in Lixwm in May 2005. The question was if we could estimate the price could be to extend the lease by 90 years. Comparable premises in Lixwm with a long lease were worth £254,200. The mid-range ground rent payable was £60 collected yearly. The lease ended in 2077. Considering the 51 years outstanding we approximated the compensation to the landlord to extend the lease to be between £43,700 and £50,600 not including professional charges.