It’s an underpublicised certainty that a Longthorpe residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Longthorpe property market.Where your lease has approximately 90 years left, 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 dips below 80 years - otherwise a higher amount will be due. Most leasehold owners in Longthorpe will be able to extend under the legislation; however a conveyancer will be able to confirm whether you qualify for an extension. In some situations 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 conveyancer for the duration of the formalities.
Leasehold properties in Longthorpe with more than 100 years unexpired 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 home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The conveyancing solicitors that we work with procure Longthorpe 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 conveyancer we work with provide it.
Two years ago Leon, came critically near to the eighty-year threshold with the lease on his garden flat in Longthorpe. In buying his property twenty years previously, the length of the lease was of no relevance. As luck would have it, he recognised he needed to take action soon on a lease extension. Leon arranged for a lease extension at the eleventh hour in January. Leon and the freeholder ultimately agreed on an amount of £5,500 . If the lease had slipped lower than eighty years, the price would have escalated by at least £900.
Mr H Cox took over the lease of a first floor apartment in Longthorpe in February 2009. The dilemma was if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Comparable residencies in Longthorpe with 100 year plus lease were worth £267,600. The mid-range amount of ground rent was £65 collected monthly. The lease ended on 21 August 2092. Considering the 67 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £14,300 and £16,400 exclusive of expenses.
Mr and Mrs. O Baker took over the lease of a garden apartment in Longthorpe in February 1997. We are asked if we could approximate the premium would be for a 90 year lease extension. Identical residencies in Longthorpe with an extended lease were in the region of £206,200. The mid-range ground rent payable was £55 invoiced quarterly. The lease elapsed in 2081. Having 56 years unexpired we calculated the premium to the landlord for the lease extension to be within £31,400 and £36,200 plus professional charges.