Lutterworth leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Lutterworth residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Lutterworth you should investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold residencies 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 to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Chelsea Building Society | |
| Nationwide Building Society | |
| Santander | |
| Virgin |
Lease extensions in Lutterworth can be a difficult process. We recommend you secure professional help from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Lutterworth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Callum was the the leasehold owner of a conversion flat in Lutterworth on the market with a lease of a little over 61 years remaining. Callum on an informal basis spoke with his freeholder being a well known local-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Callum to invoke his statutory right. Callum procured expert advice and was able to make an informed decision and deal with the matter and sell the property.
Last Christmas we were approach by Mrs Isobel Díaz , who completed a newly refurbished apartment in Lutterworth in January 2010. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Similar premises in Lutterworth with an extended lease were valued around £270,000. The average amount of ground rent was £55 billed monthly. The lease concluded in 2101. Considering the 75 years as a residual term we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.
In 2012 we were called by Ms I Johnson who, having moved into a basement flat in Lutterworth in May 2009. The dilemma was if we could approximate the price would likely be to prolong the lease by ninety years. Identical flats in Lutterworth with an extended lease were in the region of £173,800. The mid-range amount of ground rent was £60 billed every twelve months. The lease expired on 1 May 2081. Having 55 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 plus costs.