Stop! Your Lease Extension in Ludlow Could Be FREE

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Many leaseholders in Ludlow are unaware that their original lawyer had a duty to warn them about future mortgageability and saleability issues. Before you pay thousands to your freeholder, let us audit your purchase history. You might have a claim that pays for your lease extension in full

If you are facing a significant premium because your lease in Ludlow has dropped toward the 80-year mark, your previous lawyer may be at fault. Our panel of experts specialise in recovering lease extension costs from negligent firms who failed to protect your investment.

Why you should commence your Ludlow lease extension

Why you should commence your Ludlow lease extension today:

A Ludlow lease depreciates with the years remaining on the lease.

Ludlow leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Ludlow tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Ludlow you really ought to see if your lease has between 70 and 90 years remaining. There are compelling reasons why a Ludlow flat owner with a lease having around eighty years unexpired should take action to make sure that a lease extension is effected without delay

An extended lease has roughly the same value as a freehold

Leasehold residencies in Ludlow with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.

Lending institutions will not finance a property on a short lease

The propensity since 2008 has been for lenders to tighten lending criteria across the board - this has extended to the types of security over which the home loan is to be charged. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. In the past banks were content with 25 years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

Lender Requirement
Barclays plc Leases with less than 70 years at the commencement of the mortgage are not acceptable.

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;
Halifax Minimum 70 years from the date of the mortgage.
Leeds Building Society 85 years remaining from the start of the mortgage.
Lloyds TSB Scotland Minimum 70 years from the date of the mortgage.
Royal Bank of Scotland Mortgage term plus 30 years.

Why use us for your lease extension in Ludlow?

Engaging our service will provide you increased control over the value of your Ludlow leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Ludlow Lease Extension Example Cases:

Holly, Ludlow, Shropshire,

After unsuccessful discussions with the landlord of her studio flat in Ludlow, Holly started the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The transaction completed in November 2009. The freeholder’s charges were negotiated to under 450 pounds.

Ludlow case:

Mr and Mrs. U Roux acquired a purpose-built flat in Ludlow in January 1997. The dilemma was if we could estimate the premium would likely be to prolong the lease by 90 years. Comparative properties in Ludlow with 100 year plus lease were worth £166,800. The mid-range amount of ground rent was £50 collected quarterly. The lease lapsed in 2076. Considering the 50 years left we approximated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 plus expenses.

Ludlow case:

Dr S Johnson owned a studio apartment in Ludlow in February 2010. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical properties in Ludlow with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease ran out on 12 May 2096. Taking into account 70 years left we estimated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of fees.