Lytchett Matravers residential property owned on a long lease is a depreciating asset as the leaseholder only owns the property for a set term.
Leasehold premises in Lytchett Matravers with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you better control over the value of your Lytchett Matravers leasehold, as your property will be more valuable and marketable in respect of lease length should you decide 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 the wake of eight months of unsuccessful negotiations with the freeholder of her basement flat in Lytchett Matravers, Rhiannon started the lease extension process just as the lease was nearing the crucial eighty-year deadline. The transaction was finalised in March 2007. The freeholder’s charges were kept to an absolute minimum.
Dr S Nguyen was assigned a lease of a one bedroom flat in Lytchett Matravers in May 2011. The question was if we could approximate the premium would be for a 90 year lease extension. Comparable residencies in Lytchett Matravers with 100 year plus lease were worth £210,600. The mid-range amount of ground rent was £45 billed per annum. The lease came to a finish on 24 January 2087. Given that there were 62 years remaining we calculated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of professional charges.
Last Christmas we were approach by Mrs Jodie Hernández , who completed a purpose-built apartment in Lytchett Matravers in May 1999. We are asked if we could approximate the premium could be to extend the lease by ninety years. Identical residencies in Lytchett Matravers with a long lease were in the region of £265,000. The mid-range amount of ground rent was £50 billed per annum. The lease finished on 20 April 2098. Given that there were 73 years left we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.