With a long leasehold premises in Lowestoft, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than eighty years left. Anyone in Lowestoft with a lease drawing near to 81 years left should seriously consider extending it sooner rather than later. Once a lease has under 80 years remaining, under the relevant statute the landlord can calculate and levy a larger premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Lowestoft,the lease extension lawyers 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.
Henry owned a 2 bedroom flat in Lowestoft being marketed with a lease of a few days over fifty eight years remaining. Henry informally spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 per annum. No ground rent would be payable on a lease extension were Henry to invoke his statutory right. Henry obtained expert advice and was able to make an informed decision and deal with the matter and sell the property.
Last month we were called by Ms D Lefèvre , who bought a first floor flat in Lowestoft in October 1999. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparable properties in Lowestoft with 100 year plus lease were worth £290,000. The average amount of ground rent was £45 invoiced annually. The lease ran out on 1 July 2098. Having 73 years remaining we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus expenses.
In 2009 we were contacted by Mrs T López who, having was assigned a lease of a one bedroom flat in Lowestoft in May 2006. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by 90 years. Comparable premises in Lowestoft with an extended lease were valued about £240,600. The average ground rent payable was £60 invoiced quarterly. The lease finished on 12 September 2087. Having 62 years remaining we approximated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of professional charges.