When it comes to long leasehold premises in Lechlade, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably when there are less than 80 years left. Residents in Lechlade with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has less than eighty years outstanding, under the relevant Act the freeholder is entitled to calculate and charge a greater amount, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold residencies in Lechlade with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Lechlade can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor 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.
James was the the leasehold proprietor of a conversion flat in Lechlade on the market with a lease of a little over 72 years left. James informally contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were James to exercise his statutory right. James procured expert legal guidance and secured satisfactory deal without resorting to tribunal and readily saleable.
In 2013 we were approached by Mrs Jennifer Jones who, having completed a ground floor apartment in Lechlade in November 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Identical premises in Lechlade with an extended lease were worth £218,000. The average amount of ground rent was £45 invoiced monthly. The lease elapsed in 2088. Considering the 63 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 not including professional charges.
In 2010 we were contacted by Mr W Watson who, having was assigned a lease of a one bedroom flat in Lechlade in June 1996. The dilemma was if we could estimate the premium could be to extend the lease by a further 90 years. Comparable homes in Lechlade with an extended lease were valued about £270,000. The mid-range ground rent payable was £55 billed quarterly. The lease ran out on 24 June 2099. Taking into account 74 years remaining we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.