Ludlow leases on domestic properties are gradually losing value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Ludlow will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In certain circumstances you may not be entitled. There are prescribed timetables and procedures to follow once the process is triggered so it’s wise to be guided by a conveyancer during the process.
Leasehold properties in Ludlow with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| 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 Ludlow can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Ludlow lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful correspondence with the landlord of her first floor apartment in Ludlow, Alice initiated the lease extension process as the eighty year deadline was rapidly advancing. The transaction was concluded in October 2014. The freeholder’s charges were kept to an absolute minimum.
In 2009 we were e-mailed by Mrs E Lefèvre who, having acquired a one bedroom flat in Ludlow in April 1998. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Similar residencies in Ludlow with an extended lease were in the region of £300,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease end date was in 2100. Having 75 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of fees.
Mr V Díaz moved into a studio apartment in Ludlow in February 1998. We are asked if we could estimate the price would likely be to prolong the lease by an additional years. Comparative flats in Ludlow with an extended lease were valued around £252,800. The mid-range ground rent payable was £65 billed annually. The lease concluded on 27 May 2090. Taking into account 65 years left we approximated the premium to the landlord to extend the lease to be between £18,100 and £20,800 not including costs.