Ludlow leases on domestic properties are gradually losing value. Where your lease has about ninety years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease drops below this level then you begin incurring an additional element called marriage value. Flat owners in Ludlow will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In some circumstances you may not qualify. There are prescribed timetables and procedures to comply with once the process has commenced so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord in Ludlow,the lease extension experts 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 Ludlow valuers.
Mason owned a 2 bedroom flat in Ludlow on the market with a lease of a few days over 59 years outstanding. Mason informally approached his freeholder a well known Manchester-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 an increased rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Mason to exercise his statutory right. Mason obtained expert legal guidance and secured satisfactory deal informally and sell the property.
Last year we were approach by Mr and Mrs. U Cook , who took over the lease of a basement apartment in Ludlow in May 2001. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical flats in Ludlow with an extended lease were in the region of £235,600. The average amount of ground rent was £60 invoiced annually. The lease elapsed in 2088. Given that there were 62 years unexpired we calculated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 plus fees.
Last year we were phoned by Mr Alex Rivera , who took over the lease of a studio apartment in Ludlow in March 2008. The question was if we could approximate the price could be to extend the lease by 90 years. Identical premises in Ludlow with 100 year plus lease were in the region of £174,200. The average amount of ground rent was £55 collected every twelve months. The lease terminated on 22 July 2077. Given that there were 51 years as a residual term we estimated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of legals.