The market value of Lowestoft leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase significantly once the remaining term is below than 80 years
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
Irrespective of whether you are a tenant or a freeholder in Lowestoft,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Lowestoft valuers.
Nathaniel was the the leasehold proprietor of a studio apartment in Lowestoft on the market with a lease of just over sixty years remaining. Nathaniel on an informal basis spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Nathaniel to invoke his statutory right. Nathaniel obtained expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.
Last October we were e-mailed by Mr and Mrs. L Bonnet , who purchased a one bedroom apartment in Lowestoft in September 2005. We are asked if we could approximate the price could be for a ninety year lease extension. Identical premises in Lowestoft with an extended lease were worth £200,000. The mid-range amount of ground rent was £50 billed annually. The lease came to a finish on 7 February 2104. Considering the 78 years left we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus expenses.
Last January we were e-mailed by Mr and Mrs. T Martinez , who was assigned a lease of a first floor flat in Lowestoft in October 2000. The question was if we could estimate the premium would be for a ninety year extension to my lease. Identical premises in Lowestoft with an extended lease were in the region of £267,600. The average amount of ground rent was £65 invoiced yearly. The lease came to a finish in 2093. Having 67 years remaining we estimated the premium to the freeholder for the lease extension to be between £14,300 and £16,400 not including fees.