Lutterworth 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 gets more expensive. Most owners of residential leasehold property in Lutterworth enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Lutterworth you would be well advised to check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
Leasehold properties in Lutterworth with over 100 years outstanding on the lease are often regarded as a ‘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 estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Yorkshire 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. |
The conveyancing solicitors that we work with handle 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 conveyancing solicitor we work with provide it.
Trailing protracted correspondence with the landlord of her one bedroom apartment in Lutterworth, Isobel commenced the lease extension process as the 80 year deadline was fast approaching. The legal work was concluded in November 2007. The landlord’s fees were kept to an absolute minimum.
Mr Ibrahim Patel owned a garden flat in Lutterworth in April 2003. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Comparative premises in Lutterworth with 100 year plus lease were in the region of £254,200. The average amount of ground rent was £60 invoiced quarterly. The lease ran out in 2077. Considering the 51 years unexpired we estimated the compensation to the landlord to extend the lease to be between £43,700 and £50,600 not including professional charges.
Last April we were e-mailed by Mr and Mrs. O David , who purchased a recently refurbished apartment in Lutterworth in February 1995. We are asked if we could shed any light on how much (roughly) premium could be to prolong the lease by ninety years. Identical residencies in Lutterworth with 100 year plus lease were valued around £210,600. The mid-range amount of ground rent was £45 billed every twelve months. The lease elapsed on 9 January 2088. Having 62 years unexpired we calculated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 not including professional charges.