Loughborough residential property owned on a long lease is a depreciating asset because a leaseholder merely owns the property for a set term.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Godiva Mortgages | |
| National Westminster Bank | |
| TSB | |
| Yorkshire Building Society |
Lease extensions in Loughborough can be a difficult process. We recommend you obtain professional help 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 procuring Loughborough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Blake owned a studio flat in Loughborough being marketed with a lease of a few days over 59 years remaining. Blake informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Blake to invoke his statutory right. Blake procured expert advice and secured an acceptable deal informally and readily saleable.
Last Spring we were contacted by Mrs Sian Hernández , who bought a garden apartment in Loughborough in November 2000. The question was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparative residencies in Loughborough with an extended lease were worth £267,600. The average ground rent payable was £65 collected every twelve months. The lease expired in 2093. Taking into account 67 years outstanding we calculated the compensation to the landlord to extend the lease to be within £14,300 and £16,400 not including fees.
Mr Harvey Mitchell acquired a studio apartment in Loughborough in June 2009. The dilemma was if we could approximate the premium would be for a 90 year lease extension. Comparable premises in Loughborough with an extended lease were in the region of £201,200. The average amount of ground rent was £55 invoiced every twelve months. The lease elapsed on 26 September 2082. Given that there were 56 years outstanding we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 plus costs.