Quorn 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 your lease becomes more expensive. The majority of owners of residential leasehold property in Quorn enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Quorn you must investigate if your lease has between seventy and ninety years remaining. There are good reasons why a Quorn leaseholder with a lease having around 80 years left should take steps to make sure that a lease extension is effected without delay
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Quorn,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Quorn valuers.
Following unsuccessful discussions with the landlord of her one bedroom flat in Quorn, Catherine initiated the lease extension process as the eighty year threshold was swiftly advancing. The legal work was concluded in April 2010. The landlord’s charges were restricted to a tad over 600 GBP.
In 2014 we were called by Dr O Ward who, having was assigned a lease of a recently refurbished apartment in Quorn in August 2007. The dilemma was if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Identical homes in Quorn with 100 year plus lease were worth £250,400. The mid-range ground rent payable was £65 collected quarterly. The lease came to a finish on 17 September 2089. Having 64 years outstanding we estimated the premium to the landlord to extend the lease to be between £19,000 and £22,000 not including professional charges.
In 2012 we were contacted by Ms F Ricardo who, having bought a first floor apartment in Quorn in February 2001. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by a further 90 years. Identical flats in Quorn with a long lease were in the region of £184,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease ended in 2078. Given that there were 53 years unexpired we approximated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 not including legals.