Unfortunately that a Loddon residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Loddon property prices.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher amount will be payable. The majority of flat owners in Loddon will be able to extend under the legislation; however a lawyer should be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
It is conventional wisdom that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Loddon,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Loddon valuers.
Last October Dylan, came seriously near to the 80-year threshold with the lease on his purpose- built apartment in Loddon. Having bought his home 18 years previously, the unexpired term was of no interest. Thankfully, he became aware that he needed to take steps soon on a lease extension. Dylan extended the lease just in the nick of time last May. Dylan and the landlord who owned the flat above in the end settled on sum of £5,500 . If he had missed the deadline, the figure would have increased by at least £1,125.
In 2014 we were called by Mr S López who, having took over the lease of a basement apartment in Loddon in November 2010. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by ninety years. Similar premises in Loddon with an extended lease were worth £250,400. The mid-range ground rent payable was £65 billed annually. The lease elapsed in 2089. Given that there were 64 years left we estimated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 plus expenses.
Last Christmas we were e-mailed by Dr Toby Hernández , who purchased a studio apartment in Loddon in July 1999. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparative homes in Loddon with 100 year plus lease were in the region of £189,000. The average ground rent payable was £55 collected quarterly. The lease came to a finish on 23 May 2078. Considering the 53 years remaining we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of expenses.