It’s a harsh truth that a Longthorpe residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Longthorpe property market.Once your lease nears 85ish years, you need to 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 slips lower than 80 years - otherwise a higher amount will be payable. Most flat owners in Longthorpe will be able to extend under the legislation; however a lawyer will be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the process.
Leasehold residencies in Longthorpe with over 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Longthorpe can be a difficult process. We recommend you get guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Longthorpe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted correspondence with the landlord of her studio apartment in Longthorpe, Abbie initiated the lease extension process as the eighty year mark was swiftly approaching. The transaction was concluded in June 2006. The freeholder’s charges were negotiated to less than 450 pounds.
Last Winter we were e-mailed by Mr H Rivera , who moved into a purpose-built apartment in Longthorpe in September 2011. We are asked if we could estimate the premium would be to extend the lease by an additional years. Similar flats in Longthorpe with an extended lease were valued about £205,000. The average ground rent payable was £50 collected monthly. The lease termination date was in 2105. Having 79 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of legals.
Last Winter we were e-mailed by Mr and Mrs. J Lee , who acquired a one bedroom flat in Longthorpe in March 1995. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable premises in Longthorpe with an extended lease were in the region of £275,000. The average amount of ground rent was £65 collected monthly. The lease lapsed in 2094. Taking into account 68 years left we calculated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including costs.