Unfortunately that a Ludlow residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Ludlow property market.Where your lease has approximately 90 years left, you need to start considering 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 under eighty years - otherwise a higher premium will be due. The majority of leasehold owners in Ludlow will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
Retaining our service will provide you enhanced control over the value of your Ludlow leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After protracted negotiations with the landlord of her first floor flat in Ludlow, Eleanor started the lease extension process just as the lease was approaching the crucial 80-year threshold. The lease extension completed in October 2013. The landlord’s charges were kept to an absolute minimum.
Last month we were called by Mr and Mrs. H Evans , who took over the lease of a ground floor apartment in Ludlow in June 1999. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Similar flats in Ludlow with a long lease were worth £248,000. The average amount of ground rent was £65 collected per annum. The lease came to a finish on 17 September 2088. Considering the 63 years remaining we calculated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 exclusive of professional charges.
In 2011 we were phoned by Mrs Y Green who, having completed a basement apartment in Ludlow in July 2000. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Similar properties in Ludlow with an extended lease were in the region of £184,000. The average ground rent payable was £55 collected annually. The lease ended on 9 September 2078. Having 53 years left we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including costs.