As the length of the unexpired term of a Loughborough residential lease lessens so does its value and therefore the value of your property. If the lease has, beyond 125 years remaining then this decrease may be fractional 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 increase markedly the cost. It is the primary reason why you should extend the lease without delay. The majority of flat owners in Loughborough will meet the qualifying criteria; however a lawyer can confirm whether you qualify 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 in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Loughborough can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor with experience in this area.
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 Loughborough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jacob owned a 2 bedroom apartment in Loughborough being marketed with a lease of a few days over fifty eight years unexpired. Jacob informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 annually. No ground rent would be payable on a lease extension were Jacob to invoke his statutory right. Jacob procured expert advice and secured an acceptable deal without resorting to tribunal and sell the property.
Last Christmas we were e-mailed by Dr E Bell , who acquired a recently refurbished flat in Loughborough in January 2011. The question was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparative properties in Loughborough with a long lease were valued about £275,000. The mid-range ground rent payable was £45 invoiced yearly. The lease concluded on 1 June 2094. Having 69 years remaining we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of fees.
Last Christmas we were phoned by Dr W Nguyen , who purchased a one bedroom flat in Loughborough in February 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Comparable residencies in Loughborough with an extended lease were valued about £216,000. The mid-range amount of ground rent was £60 collected monthly. The lease came to a finish on 7 April 2083. Taking into account 58 years left we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus fees.