Loughborough leases on domestic deteriorating in value. Where your lease has approximately ninety years remaining, you should start thinking about a lease extension. If lease term dips under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Loughborough will usually qualify for a lease extension; however a solicitor will check your eligibility. In some cases you may not qualify. There are prescribed deadlines and steps to follow once the process is triggered so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Using our service gives you enhanced control over the value of your Loughborough leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted discussions with the landlord of her studio apartment in Loughborough, Naomi commenced the lease extension process as the 80 year mark was quickly approaching. The lease extension completed in June 2013. The landlord’s costs were kept to an absolute minimum.
In 2009 we were e-mailed by Dr Ollie King who, having purchased a one bedroom flat in Loughborough in May 1995. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Identical homes in Loughborough with 100 year plus lease were in the region of £250,400. The mid-range amount of ground rent was £65 billed quarterly. The lease lapsed on 10 September 2089. Having 64 years outstanding we calculated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 plus fees.
Last April we were called by Dr Cameron David , who bought a ground floor flat in Loughborough in January 2008. We are asked if we could approximate the premium would be to extend the lease by ninety years. Comparative homes in Loughborough with 100 year plus lease were in the region of £184,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease concluded in 2078. Given that there were 53 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 plus expenses.