Unfortunately that a Lutterworth residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Lutterworth property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher premium will be due. The majority of leasehold owners in Lutterworth will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the process.
It is generally considered that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Godiva Mortgages | |
| Halifax | |
| Nationwide Building Society | |
| Royal Bank of Scotland |
Irrespective of whether you are a tenant or a freeholder 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.
Twenty four months ago Jayden, started to get near to the 80-year mark with the lease on his purpose- built flat in Lutterworth. In buying his property two decades ago, the unexpired term was of little bearing. Fortunately, he became aware that he needed to take action soon on a lease extension. Jayden arranged for a lease extension at the eleventh hour in January. Jayden and the landlord who owned the flat above subsequently agreed on sum of £5,000 . If he failed to meet the deadline, the sum would have escalated by a minimum £950.
Last Autumn we were approach by Mrs Kelsey Kelly , who bought a newly refurbished flat in Lutterworth in July 2004. The dilemma was if we could estimate the premium could be to prolong the lease by an additional years. Comparable flats in Lutterworth with an extended lease were valued around £193,400. The mid-range ground rent payable was £65 collected monthly. The lease expiry date was in 2085. Taking into account 59 years outstanding we calculated the premium to the landlord to extend the lease to be within £21,900 and £25,200 not including legals.
In 2009 we were called by Dr Ella Jackson who, having acquired a purpose-built flat in Lutterworth in February 2005. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Comparative residencies in Lutterworth with 100 year plus lease were worth £255,000. The mid-range ground rent payable was £50 invoiced per annum. The lease finished in 2096. Taking into account 70 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £10,500 and £12,000 not including expenses.