As the the remaining lease term of a Lound domestic 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 of little impact that being said there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner than later. The majority of flat owners in Lound will qualify for this right; nevertheless a lawyer can confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Lound with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Engaging our service will provide you increased control over the value of your Lound leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Harry was the the leasehold owner of a high value apartment in Lound on the market with a lease of a little over fifty eight years left. Harry on an informal basis approached his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Harry to invoke his statutory right. Harry procured expert legal guidance and secured an acceptable deal without resorting to tribunal and readily saleable.
Mr and Mrs. U Lee completed a one bedroom apartment in Lound in April 1999. The question was if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparable homes in Lound with an extended lease were valued around £265,000. The mid-range ground rent payable was £50 collected per annum. The lease came to a finish in 2100. Given that there were 74 years unexpired we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of expenses.
Last April we were approach by Ms J Peterson , who acquired a purpose-built flat in Lound in February 1996. The dilemma was if we could estimate the price would be to prolong the lease by ninety years. Identical flats in Lound with an extended lease were worth £166,400. The average ground rent payable was £60 collected per annum. The lease ran out in 2080. Considering the 54 years as a residual term we calculated the premium to the landlord for the lease extension to be within £32,300 and £37,400 exclusive of fees.