Lechlade leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Lechlade enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Lechlade you would be well advised to check if your lease has between seventy and ninety years remaining. There are good reasons why a Lechlade leaseholder with a lease having around eighty years left should take action to make sure that a lease extension is put in place without delay
It is generally accepted that a residential leasehold with more than 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 30 years left, the premises 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. |
| Lloyds TSB Scotland | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
The conveyancing solicitors that we work with undertake Lechlade lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Following unsuccessful correspondence with the freeholder of her garden apartment in Lechlade, Hannah started the lease extension process just as the lease was approaching the critical 80-year deadline. The lease extension was finalised in May 2007. The freeholder’s fees were kept to an absolute minimum.
In 2012 we were e-mailed by Dr William Roberts who, having owned a studio apartment in Lechlade in August 2004. We are asked if we could estimate the price could be for a ninety year lease extension. Comparable premises in Lechlade with 100 year plus lease were in the region of £183,600. The average amount of ground rent was £65 invoiced per annum. The lease ran out on 6 June 2083. Having 57 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of costs.
Mr Dylan Bell purchased a one bedroom apartment in Lechlade in May 1996. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical residencies in Lechlade with a long lease were in the region of £245,000. The mid-range amount of ground rent was £50 billed monthly. The lease lapsed on 5 March 2094. Considering the 68 years remaining we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.