For anyone whose Longthorpe home is held on a long lease, our message is clear – if you ignore the situation, the property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension.
Leasehold properties in Longthorpe with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Longthorpe can be a difficult process. We recommend you get guidance from a conveyancer and valuer 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 in-depth market knowledge 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.
Trailing protracted discussions with the landlord of her leasehold flat in Longthorpe, Emily initiated the lease extension process just as her lease was approaching the crucial eighty-year threshold. The lease extension completed in May 2015. The landlord’s charges were restricted to below 550 pounds.
In 2014 we were approached by Dr C Brown who, having took over the lease of a one bedroom flat in Longthorpe in February 2004. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Similar homes in Longthorpe with an extended lease were in the region of £240,600. The mid-range ground rent payable was £60 invoiced monthly. The lease ended in 2087. Considering the 62 years left we calculated the compensation to the freeholder to extend the lease to be within £21,900 and £25,200 not including expenses.
In 2013 we were phoned by Mr and Mrs. D Hernández who, having completed a first floor flat in Longthorpe in May 2003. We are asked if we could approximate the price would be for a 90 year extension to my lease. Similar flats in Longthorpe with 100 year plus lease were valued around £174,200. The mid-range ground rent payable was £55 billed quarterly. The lease finished on 21 November 2076. Having 51 years unexpired we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 not including legals.