Lechlade leases on residential deteriorating in value. if your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Lechlade will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In some circumstances you may not qualify. There are prescribed timetables and procedures to follow once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 procure guidance from a conveyancer and surveyor 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 in-depth market knowledge 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.
Off the back of protracted correspondence with the landlord of her purpose-built apartment in Lechlade, Kelsey initiated the lease extension process as the 80 year threshold was rapidly approaching. The legal work completed in April 2010. The landlord’s costs were restricted to under 700 pounds.
Last May we were e-mailed by Mr P Turner , who moved into a one bedroom flat in Lechlade in August 1999. We are asked if we could approximate the premium could be to extend the lease by a further 90 years. Comparable properties in Lechlade with an extended lease were valued around £193,400. The mid-range amount of ground rent was £65 collected every twelve months. The lease end date was on 16 November 2085. Having 59 years as a residual term we calculated the premium to the landlord for the lease extension to be between £21,900 and £25,200 not including costs.
Last Winter we were contacted by Dr G King , who completed a garden flat in Lechlade in September 2006. We are asked if we could estimate the premium could be for a 90 year lease extension. Similar premises in Lechlade with a long lease were in the region of £255,000. The average amount of ground rent was £50 billed quarterly. The lease ended in 2096. Taking into account 70 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £10,500 and £12,000 plus legals.