Lixwm leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Lixwm tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Lixwm you must investigate if your lease has between seventy and 90 years remaining. There are compelling reasons why a Lixwm flat owner with a lease having around eighty years left should take action to ensure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for decades to come.
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors 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 lawyer we work with provide it.
John was the the leasehold proprietor of a 2 bedroom flat in Lixwm being marketed with a lease of a few days over 61 years outstanding. John informally approached his freeholder a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were John to invoke his statutory right. John procured expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Mr and Mrs. I Dupont purchased a basement apartment in Lixwm in March 1997. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Comparable premises in Lixwm with an extended lease were in the region of £275,000. The mid-range ground rent payable was £55 invoiced annually. The lease elapsed in 2102. Considering the 76 years left we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.
Last January we were e-mailed by Dr V Rodríguez , who moved into a studio flat in Lixwm in November 1999. The question was if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Identical premises in Lixwm with a long lease were in the region of £176,200. The mid-range ground rent payable was £65 collected monthly. The lease finished on 8 August 2082. Taking into account 56 years unexpired we approximated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 not including professional charges.