When it comes to long leasehold property in Lutterworth, you are actually buying an entitlement to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than eighty years remaining. Anyone in Lutterworth with a lease approaching 81 years left should seriously consider extending it as soon as possible. Once a lease has below eighty years left, under the relevant statute the landlord can calculate and levy a greater amount, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold residencies in Lutterworth with over one hundred years left on the lease are sometimes referred to as ‘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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service gives you increased control over the value of your Lutterworth leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Cameron, started to get near to the 80-year mark with the lease on his one bedroom apartment in Lutterworth. In buying his flat two decades ago, the unexpired term was of little concern. Luckily, he noticed he would imminently be paying an escalated premium for Extending the lease. Cameron arranged for a lease extension just in the nick of time last June. Cameron and the landlord who owned the flat above eventually settled on an amount of £5,000 . If the lease had gone below 80 years, the premium would have gone up by a minimum £1,150.
Last Winter we were approach by Mr Alfie Vincent , who purchased a one bedroom apartment in Lutterworth in April 2009. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparative homes in Lutterworth with 100 year plus lease were worth £264,000. The average amount of ground rent was £60 invoiced monthly. The lease lapsed on 23 July 2079. Having 53 years left we approximated the premium to the landlord for the lease extension to be between £37,100 and £42,800 plus expenses.
Last March we were called by Mr and Mrs. O Cooper , who was assigned a lease of a garden flat in Lutterworth in September 2008. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in Lutterworth with 100 year plus lease were worth £225,400. The mid-range amount of ground rent was £45 invoiced per annum. The lease concluded in 2090. Having 64 years outstanding we approximated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 exclusive of expenses.