When it comes to long leasehold premises in Looe, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably once there are less than 80 years remaining. Residents in Looe with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. When a lease has below eighty years outstanding, under the relevant Act the freeholder is entitled to calculate and charge a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| 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; |
| Chelsea 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
Lease extensions in Looe can be a difficult process. We recommend you obtain professional help from a lawyer and valuer with experience in lease extensions.
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 Looe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Joshua, came seriously near to the 80-year mark with the lease on his one bedroom apartment in Looe. Having purchased his home two decades ago, the length of the lease was of minimal interest. As luck would have it, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Joshua extended the lease just under the wire in January. Joshua and the freeholder in the end settled on sum of £5,500 . If the lease had slipped below eighty years, the sum would have become more exhorbitant by a minimum £1,125.
Last Summer we were called by Mr V Ali , who purchased a one bedroom flat in Looe in February 1998. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Identical properties in Looe with an extended lease were in the region of £248,000. The mid-range ground rent payable was £65 billed per annum. The lease end date was in 2088. Taking into account 63 years remaining we estimated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 plus professional charges.
Mr Joseph Lefèvre owned a ground floor apartment in Looe in May 2005. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Similar homes in Looe with 100 year plus lease were valued about £181,600. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease elapsed on 17 February 2077. Considering the 52 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of expenses.