Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Lostwithiel. Inevitably, the period of lease remaining reduces over time. This may pass by relatively unnoticed when the flat or house has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Lostwithiel have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. You should give due attention before delaying your Lostwithiel lease extension. Holding off the cost now simply increases the price you will ultimately have to pay to extend your lease
Leasehold residencies in Lostwithiel with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Retaining our service will provide you better control over the value of your Lostwithiel leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Leon was the the leasehold proprietor of a conversion flat in Lostwithiel on the market with a lease of a little over sixty years unexpired. Leon informally contacted his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Leon to exercise his statutory right. Leon procured expert legal guidance and secured satisfactory deal informally and sell the property.
In 2014 we were phoned by Mrs C Leroy who, having moved into a basement flat in Lostwithiel in April 2001. We are asked if we could approximate the premium would be for a 90 year lease extension. Similar premises in Lostwithiel with an extended lease were valued about £245,000. The average amount of ground rent was £50 invoiced every twelve months. The lease ran out on 3 August 2094. Taking into account 68 years unexpired we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.
Last Summer we were e-mailed by Mrs Jade Díaz , who took over the lease of a recently refurbished flat in Lostwithiel in March 2011. The question was if we could approximate the price would be to extend the lease by ninety years. Comparative flats in Lostwithiel with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease finished in 2105. Having 79 years left we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of expenses.