On the balance of probabilities where you own a flat in Loughborough you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Using our service will provide you better control over the value of your Loughborough leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Muhammad was the the leasehold proprietor of a 2 bedroom flat in Loughborough being marketed with a lease of just over 61 years outstanding. Muhammad informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Muhammad to exercise his statutory right. Muhammad procured expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2014 we were phoned by Mr and Mrs. N James who, having completed a ground floor flat in Loughborough in June 2007. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Comparative residencies in Loughborough with 100 year plus lease were worth £260,200. The mid-range ground rent payable was £65 collected every twelve months. The lease lapsed on 19 February 2092. Having 66 years unexpired we approximated the premium to the landlord for the lease extension to be within £16,200 and £18,600 exclusive of legals.
Last Summer we were contacted by Dr Kelsey Dupont , who took over the lease of a ground floor flat in Loughborough in October 2003. The question was if we could shed any light on how much (approximately) price would likely be to extend the lease by an additional years. Comparative flats in Loughborough with 100 year plus lease were valued around £198,800. The mid-range amount of ground rent was £55 collected every twelve months. The lease expired in 2081. Having 55 years unexpired we estimated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 plus expenses.