For those whose Lechlade flat is held on a long lease, the message is clear – if you ignore the situation, the property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to extend the lease.
It is generally accepted that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 secure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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.
Trailing lengthy discussions with the landlord of her garden apartment in Lechlade, Jodie started the lease extension process as the 80 year mark was swiftly nearing. The transaction was concluded in November 2008. The freeholder’s fees were negotiated to slightly above 600 GBP.
In 2011 we were contacted by Mrs B Edwards who, having acquired a one bedroom flat in Lechlade in January 2009. The dilemma was if we could approximate the price could be for a 90 year lease extension. Comparable residencies in Lechlade with a long lease were in the region of £208,200. The mid-range ground rent payable was £65 invoiced quarterly. The lease ended in 2087. Given that there were 61 years remaining we estimated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 not including professional charges.
Mr C Robinson moved into a ground floor apartment in Lechlade in May 2001. The question was if we could estimate the premium would be to extend the lease by an additional years. Similar homes in Lechlade with 100 year plus lease were in the region of £260,000. The average amount of ground rent was £50 collected yearly. The lease end date was in 2098. Having 72 years remaining we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.