There is no doubt about it a leasehold property in Longton is a wasting asset as a result of the diminishing lease term. Where the lease has, in excess of 99 years to run then this decrease may be of little impact however there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner than later. Many flat owners in Longton will meet the qualifying criteria; however a conveyancer can advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 Longton can be a difficult process. We recommend you procure professional help 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 procuring Longton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Joseph, started to get near to the 80-year threshold with the lease on his two bedroom flat in Longton. In buying his home two decades ago, the unexpired term was of little bearing. by good luck, he realised he needed to take action soon on Extending the lease. Joseph was able to extend his lease at the eleventh hour in July. Joseph and the freeholder via the management company subsequently agreed on sum of £5,500 . If he had missed the deadline, the price would have become more costly by a minimum £1,100.
Last Summer we were phoned by Dr L Mercier , who owned a purpose-built apartment in Longton in October 2003. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Comparable properties in Longton with a long lease were valued around £246,800. The average amount of ground rent was £60 collected every twelve months. The lease came to a finish in 2075. Given that there were 50 years left we estimated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 not including expenses.
In 2009 we were called by Mr and Mrs. K Reed who, having acquired a one bedroom apartment in Longton in January 2000. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Similar homes in Longton with an extended lease were valued around £208,200. The average amount of ground rent was £65 billed yearly. The lease terminated on 27 June 2086. Taking into account 61 years as a residual term we calculated the premium to the landlord to extend the lease to be within £19,000 and £22,000 exclusive of costs.