As the length of the unexpired term of a Loddon residential lease decreases so does its value and therefore the value of your property. If the residual term has, in excess of 100 years remaining then this decrease may be fractional however there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner than later. Most flat owners in Loddon will meet the qualifying criteria; nevertheless a conveyancer can advise if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two 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 is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance 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. |
| 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. |
| Lloyds TSB Scotland | 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 also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you increased control over the value of your Loddon leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful negotiations with the freeholder of her garden flat in Loddon, Sophie commenced the lease extension process just as her lease was nearing the critical 80-year mark. The lease extension completed in July 2013. The landlord’s charges were negotiated to less than 500 GBP.
Mr and Mrs. I Hernández was assigned a lease of a recently refurbished apartment in Loddon in May 2000. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative flats in Loddon with an extended lease were worth £280,000. The average ground rent payable was £45 collected quarterly. The lease elapsed on 12 July 2094. Having 69 years left we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including expenses.
Mr and Mrs. S Bonnet moved into a basement flat in Loddon in May 2011. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Identical residencies in Loddon with an extended lease were valued around £216,000. The mid-range ground rent payable was £60 invoiced every twelve months. The lease finished on 3 June 2083. Taking into account 58 years remaining we approximated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 not including expenses.