The 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 escalate significantly once the remaining term is less than 80 years
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
Regardless of whether you are a tenant or a freeholder 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 in-depth market knowledge and the close ties they enjoy with Lowestoft valuers.
Half a year ago George, came seriously close to the 80-year mark with the lease on his ground floor apartment in Lowestoft. In buying his property two decades ago, the unexpired term was of no interest. Thankfully, he recognised he needed to take steps soon on Extending the lease. George extended the lease just under the wire in June. George and the landlord subsequently settled on the final figure of £5,500 . If he had missed the deadline, the sum would have gone up by a minimum £1,050.
Last Spring we were phoned by Mr and Mrs. O Lee , who completed a studio flat in Lowestoft in October 2002. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by a further 90 years. Similar properties in Lowestoft with a long lease were in the region of £260,200. The average ground rent payable was £65 invoiced monthly. The lease end date was on 24 June 2092. Taking into account 66 years outstanding we estimated the premium to the landlord for the lease extension to be within £16,200 and £18,600 exclusive of legals.
In 2014 we were e-mailed by Mr V Reed who, having took over the lease of a studio apartment in Lowestoft in September 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Comparative flats in Lowestoft with 100 year plus lease were valued around £198,800. The average amount of ground rent was £55 billed per annum. The lease finished on 24 May 2081. Given that there were 55 years outstanding we approximated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 not including fees.