Unfortunately that a Louth residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Louth property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher amount will be payable. The majority of leasehold owners in Louth will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold premises in Louth with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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 |
| 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 Louth can be a difficult process. We recommend you obtain guidance from a lawyer and valuer 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 a wealth of experience dealing with Louth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of protracted negotiations with the freeholder of her purpose-built apartment in Louth, Millie initiated the lease extension process as the eighty year threshold was quickly nearing. The transaction was finalised in March 2008. The freeholder’s fees were negotiated to less than 700 GBP.
Mrs Natasha Martin purchased a first floor flat in Louth in August 2011. The dilemma was if we could approximate the price could be for a ninety year lease extension. Identical properties in Louth with a long lease were in the region of £203,200. The mid-range amount of ground rent was £65 billed monthly. The lease terminated on 8 March 2086. Given that there were 61 years remaining we estimated the premium to the freeholder for the lease extension to be within £19,000 and £22,000 plus expenses.
Mrs Y Roberts acquired a studio apartment in Louth in July 2004. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Similar flats in Louth with 100 year plus lease were in the region of £260,000. The average ground rent payable was £50 billed monthly. The lease finished on 24 November 2097. Considering the 72 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.