Lechlade leases on domestic properties are gradually losing value. if your lease has approximately ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the existing lease drops below eighty years - otherwise a higher premium will be payable. Leasehold owners in Lechlade will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to confirm your eligibility. In some situations you may not qualify. There are also strict timetables and steps to follow once the process is initiated so it’s best to be guided by a lawyer during the process.
It is generally accepted that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 lawyers 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 conveyancing solicitor we work with provide it.
Off the back of lengthy correspondence with the freeholder of her basement apartment in Lechlade, Charlotte initiated the lease extension process as the 80 year mark was rapidly advancing. The legal work was finalised in November 2014. The freeholder’s fees were kept to an absolute minimum.
In 2013 we were approached by Dr Jasper Moreau who, having owned a purpose-built flat in Lechlade in July 1999. The question was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Similar premises in Lechlade with a long lease were valued about £280,000. The mid-range amount of ground rent was £55 billed annually. The lease came to a finish on 1 April 2103. Having 77 years as a residual term we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including expenses.
Dr W Thomas owned a recently refurbished apartment in Lechlade in July 2004. We are asked if we could estimate the premium would be to prolong the lease by an additional years. Similar premises in Lechlade with an extended lease were worth £183,600. The mid-range ground rent payable was £65 billed every twelve months. The lease expiry date was on 11 July 2083. Considering the 57 years as a residual term we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of legals.