It’s a harsh truth that a Lechlade residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Lechlade property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If the number of years remaining drops under eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Lechlade will be able to extend under the legislation; however a lawyer will be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer for the duration of the process.
Leasehold premises in Lechlade with over 100 years unexpired 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 property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Lease extensions in Lechlade can be a difficult process. We recommend you get guidance from a conveyancing solicitor 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 dealing with Lechlade lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following protracted discussions with the landlord of her one bedroom apartment in Lechlade, Bethany started the lease extension process just as her lease was approaching the critical 80-year deadline. The lease extension completed in November 2010. The freeholder’s fees were kept to an absolute minimum.
In 2010 we were phoned by Dr P Anderson who, having acquired a one bedroom apartment in Lechlade in July 2012. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative properties in Lechlade with a long lease were worth £270,000. The average ground rent payable was £55 invoiced quarterly. The lease terminated in 2099. Given that there were 74 years unexpired we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus fees.
In 2014 we were contacted by Mr and Mrs. G Davis who, having took over the lease of a first floor apartment in Lechlade in March 2005. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Comparable flats in Lechlade with 100 year plus lease were valued about £166,400. The average amount of ground rent was £60 billed per annum. The lease lapsed in 2079. Given that there were 54 years remaining we approximated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 not including expenses.