When it comes to long leasehold premises in Loughborough, you are actually buying a right to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are fewer than eighty years left. Anyone in Loughborough with a lease approaching 81 years remaining should seriously think of extending it sooner rather than later. Once a lease has under eighty years remaining, under the current legislation the landlord can calculate and demand a greater amount, based on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Loughborough can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in lease extensions.
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 in-depth market knowledge 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.
Off the back of unsuccessful negotiations with the landlord of her one bedroom apartment in Loughborough, Natalie initiated the lease extension process as the 80 year mark was swiftly coming. The legal work was finalised in November 2009. The landlord’s charges were negotiated to about 550 GBP.
Last January we were phoned by Ms Kayleigh Wilson , who bought a purpose-built flat in Loughborough in May 1995. The question was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative premises in Loughborough with 100 year plus lease were worth £235,600. The average amount of ground rent was £60 invoiced yearly. The lease finished on 15 October 2088. Given that there were 62 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 not including costs.
In 2010 we were called by Dr Rosie Moore who, having owned a first floor flat in Loughborough in August 1998. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Similar properties in Loughborough with a long lease were worth £174,200. The average amount of ground rent was £55 billed quarterly. The lease concluded in 2077. Having 51 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of legals.