Long Itchington leases on domestic properties are gradually losing value. if your lease has about 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Long Itchington will mostly qualify for a lease extension; however a solicitor should be able check your eligibility. In some situations you may not qualify. There are also strict deadlines and formalities to follow once the process has started so it’s wise to be guided by a conveyancer during the process.
Leasehold residencies in Long Itchington with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Retaining our service gives you increased control over the value of your Long Itchington leasehold, as your property will be more valuable and saleable in respect of lease length should you decide 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.
Trailing lengthy correspondence with the freeholder of her one bedroom apartment in Long Itchington, Eleanor initiated the lease extension process just as her lease was approaching the all-important eighty-year mark. The transaction was concluded in May 2011. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. J Collins bought a garden flat in Long Itchington in April 2004. We are asked if we could approximate the price would likely be for a 90 year lease extension. Identical residencies in Long Itchington with a long lease were valued about £200,000. The mid-range ground rent payable was £50 collected monthly. The lease termination date was in 2103. Having 77 years left we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of costs.
Last Spring we were contacted by Mr V Jackson , who took over the lease of a studio flat in Long Itchington in March 1996. We are asked if we could approximate the premium could be for a 90 year lease extension. Identical residencies in Long Itchington with 100 year plus lease were in the region of £260,200. The average amount of ground rent was £65 collected every twelve months. The lease ran out on 19 February 2092. Having 66 years left we calculated the premium to the landlord to extend the lease to be within £16,200 and £18,600 not including professional charges.