The closer a residential lease in Lutterworth gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, over 99 years remaining then this decrease may be of little impact however there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending sooner rather than later. Many flat owners in Lutterworth will meet the qualifying criteria; nevertheless a lawyer will be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Lutterworth with more than one hundred years remaining 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 premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake Lutterworth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Trailing unsuccessful negotiations with the landlord of her one bedroom flat in Lutterworth, Louise started the lease extension process as the eighty year mark was quickly advancing. The legal work was concluded in March 2009. The freeholder’s costs were kept to an absolute minimum.
In 2012 we were phoned by Mr and Mrs. C Campbell who, having took over the lease of a basement flat in Lutterworth in March 2004. We are asked if we could estimate the price could be to prolong the lease by 90 years. Comparative flats in Lutterworth with an extended lease were worth £191,000. The average amount of ground rent was £65 invoiced annually. The lease elapsed in 2083. Considering the 58 years outstanding we estimated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 plus fees.
In 2014 we were called by Mr and Mrs. M Nguyen who, having bought a garden flat in Lutterworth in August 2002. The question was if we could estimate the premium could be to extend the lease by a further 90 years. Comparative flats in Lutterworth with 100 year plus lease were in the region of £250,000. The mid-range ground rent payable was £50 billed per annum. The lease finished in 2094. Considering the 69 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.