There is no doubt about it a leasehold property in Louth is a wasting asset as a result of the diminishing lease term. If the residual term has, over one hundred years to run then this decrease may be fractional nevertheless there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should extend the lease without delay. Many flat owners in Louth will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 get guidance from a conveyancing solicitor and valuer with experience in this area.
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 Louth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Isaac was the the leasehold owner of a conversion flat in Louth on the market with a lease of fraction over 61 years remaining. Isaac informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Isaac to invoke his statutory right. Isaac obtained expert advice and was able to make a more informed judgement and handle with the matter and sell the flat.
Last year we were phoned by Ms Sophia Gray , who owned a first floor apartment in Louth in February 1997. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Comparative homes in Louth with an extended lease were worth £260,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease concluded on 23 September 2098. Taking into account 73 years left we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.
Last October we were called by Dr P Flores , who took over the lease of a garden apartment in Louth in February 2002. We are asked if we could estimate the premium could be for a ninety year lease extension. Similar homes in Louth with an extended lease were worth £264,000. The mid-range amount of ground rent was £60 billed per annum. The lease came to a finish in 2078. Having 53 years unexpired we approximated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 exclusive of professional charges.