The market value of Longthorpe leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase materialy once the unexpired lease term is less than 80 years
Leasehold premises in Longthorpe with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Longthorpe can be a difficult process. We recommend you procure guidance from a lawyer 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 procuring Longthorpe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Max was the the leasehold proprietor of a conversion flat in Longthorpe being sold with a lease of fraction over 61 years remaining. Max on an informal basis spoke with his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Max to invoke his statutory right. Max procured expert legal guidance and secured an acceptable deal informally and sell the flat.
Mr F Clarke was assigned a lease of a ground floor apartment in Longthorpe in April 1996. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparable flats in Longthorpe with an extended lease were in the region of £290,000. The average ground rent payable was £45 billed yearly. The lease elapsed on 26 February 2098. Given that there were 72 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.
Last month we were phoned by Ms M Cook , who was assigned a lease of a first floor apartment in Longthorpe in September 2009. The question was if we could estimate the price would likely be to prolong the lease by 90 years. Identical properties in Longthorpe with an extended lease were worth £233,200. The average amount of ground rent was £60 invoiced yearly. The lease concluded in 2087. Taking into account 61 years remaining we estimated the premium to the landlord for the lease extension to be within £22,800 and £26,400 not including legals.