The market value of Loddon leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate significantly once the unexpired lease term is less than eighty years
Leasehold properties in Loddon with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 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. |
Lease extensions in Loddon can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor with experience in this area.
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 a wealth of experience procuring Loddon lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Kai, came dangerously close to the eighty-year threshold with the lease on his two bedroom flat in Loddon. Having bought his flat twenty years ago, the unexpired term was of minimal importance. Thankfully, he realised he needed to take action soon on a lease extension. Kai arranged for a lease extension just in the nick of time in May. Kai and the landlord in the end agreed on a premium of £5,500 . If the lease had dropped below eighty years, the price would have gone up by a minimum £1,025.
Last Summer we were approach by Mr and Mrs. V López , who purchased a one bedroom flat in Loddon in April 1995. The dilemma was if we could estimate the price could be to prolong the lease by an additional years. Comparative properties in Loddon with a long lease were in the region of £295,000. The average amount of ground rent was £45 invoiced yearly. The lease lapsed in 2101. Considering the 75 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus legals.
Mr and Mrs. L Adams bought a newly refurbished flat in Loddon in January 2005. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Identical premises in Loddon with 100 year plus lease were valued about £250,400. The mid-range amount of ground rent was £65 invoiced annually. The lease end date was on 3 October 2090. Having 64 years remaining we calculated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 not including costs.