Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Lostwithiel. Clearly, the term of lease remaining reduces as time goes by. This is often overlooked and only becomes a problem when the residence needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension. Eligible long lease owners in Lostwithiel have the legal entitlement to extend the lease for an additional ninety years in accordance with statute. You should give due attention before putting off your Lostwithiel lease extension. Putting off the cost now likely increases the price you will ultimately incur for a lease extension
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The conveyancers that we work with handle Lostwithiel lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In the wake of 6 months of lengthy discussions with the landlord of her studio flat in Lostwithiel, Stephanie started the lease extension process as the eighty year threshold was rapidly coming. The legal work completed in October 2015. The landlord’s costs were kept to an absolute minimum.
Last Autumn we were e-mailed by Mrs Victoria Miller , who bought a garden apartment in Lostwithiel in March 2006. We are asked if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Identical properties in Lostwithiel with 100 year plus lease were worth £285,000. The average ground rent payable was £55 collected per annum. The lease lapsed on 3 September 2106. Given that there were 80 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of fees.
In 2012 we were phoned by Mr Liam Flores who, having owned a basement flat in Lostwithiel in April 2008. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparable flats in Lostwithiel with 100 year plus lease were valued around £200,800. The mid-range ground rent payable was £65 invoiced annually. The lease elapsed on 24 November 2086. Considering the 60 years unexpired we calculated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 exclusive of professional charges.