Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will normally be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Louth. Inevitably, the period of lease remaining shortens as time goes by. This may slip by relatively unnoticed when the residence needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease. Eligible leaseholders in Louth have the right to extend the lease for an additional ninety years in accordance with Leasehold Reform legislation. Do give careful attention before delaying your Louth lease extension. Putting off the cost now likely increases the price you will ultimately incur to extend your lease
Leasehold properties in Louth with in excess of 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Nationwide Building Society | |
| TSB | |
| The Mortgage Works |
The conveyancing solicitors that we work with procure Louth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Freddie was the the leasehold proprietor of a studio flat in Louth being sold with a lease of fraction over 72 years unexpired. Freddie informally contacted his landlord a well known local-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 £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Freddie to exercise his statutory right. Freddie obtained expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Last year we were approach by Dr Olivia Lee , who completed a newly refurbished flat in Louth in October 1998. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Similar properties in Louth with a long lease were valued about £246,800. The average ground rent payable was £60 invoiced annually. The lease terminated in 2076. Given that there were 50 years left we estimated the premium to the landlord to extend the lease to be within £44,700 and £51,600 plus professional charges.
In 2009 we were contacted by Mr and Mrs. W Evans who, having purchased a garden apartment in Louth in June 1998. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparative flats in Louth with an extended lease were worth £208,200. The average amount of ground rent was £65 billed monthly. The lease came to a finish in 2087. Having 61 years unexpired we approximated the premium to the landlord for the lease extension to be between £19,000 and £22,000 exclusive of professional charges.