Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Lutterworth. Inevitably, the term of lease remaining reduces as time goes by. This is often ignored and only raises itself as an issue when the residence needs to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying long lease owners in Lutterworth have the legal entitlement to extend the lease for an additional ninety years under statute. You should give due consideration before delaying your Lutterworth lease extension. Holding off that expense now likely increases the price you will eventually incur for a lease extension
Leasehold premises in Lutterworth with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Lutterworth,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Lutterworth valuers.
14 months ago Oscar, came perilously near to the eighty-year mark with the lease on his studio apartment in Lutterworth. Having bought his property two decades ago, the unexpired term was of little interest. by good luck, it dawned on him that he would soon be paying way over the odds for a lease extension. Oscar was able to extend his lease just under the wire in June. Oscar and the landlord who owned the flat above eventually agreed on a premium of £6,000 . If the lease had slipped below eighty years, the premium would have gone up by a minimum £1,000.
Last Winter we were e-mailed by Mrs Eleanor Sánchez , who moved into a first floor flat in Lutterworth in October 2006. 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. Similar residencies in Lutterworth with an extended lease were worth £255,000. The mid-range ground rent payable was £50 billed yearly. The lease concluded in 2095. Considering the 70 years outstanding we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.
Last Summer we were approach by Mr and Mrs. B Rivera , who purchased a one bedroom flat in Lutterworth in July 2000. We are asked if we could estimate the price could be for a 90 year extension to my lease. Comparable residencies in Lutterworth with an extended lease were valued about £246,800. The mid-range ground rent payable was £60 invoiced yearly. The lease ran out on 18 April 2075. Given that there were 50 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £44,700 and £51,600 exclusive of professional charges.