The only way is down when it comes to Loddon lease terms. Loddon leaseholds that have a residual term lower than 80 years will de-escalate in market price at a rapid rate, and the cost to extend your lease will rise.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Skipton Building Society | |
| Virgin |
The conveyancing solicitors that we work with undertake Loddon 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.
In 2014 Henry, started to get close to the eighty-year threshold with the lease on his one bedroom flat in Loddon. In buying his home two decades ago, the unexpired term was of little bearing. Thankfully, he realised he needed to take steps soon on a lease extension. Henry extended the lease just under the wire in June. Henry and the freeholder via the managing agents eventually settled on the final figure of £6,000 . If he not met the deadline, the amount would have increased by a minimum £1,150.
Last November we were called by Dr R Martin , who completed a garden flat in Loddon in March 1995. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparable premises in Loddon with 100 year plus lease were worth £270,000. The mid-range ground rent payable was £65 collected quarterly. The lease finished in 2094. Having 68 years left we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus expenses.
Last month we were approach by Dr O James , who moved into a first floor flat in Loddon in January 2001. The dilemma was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by ninety years. Comparable properties in Loddon with a long lease were valued around £208,600. The average amount of ground rent was £60 billed per annum. The lease ended in 2083. Given that there were 57 years outstanding we calculated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of expenses.