The nearer a residential lease in Littleport nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, beyond 99 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has under than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner as opposed to later. The majority of flat owners in Littleport will meet the qualifying criteria; nevertheless a conveyancer should be able to advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with in excess of 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 45 years remaining, the residence will be worth the same as a freehold for many years ahead.
| 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; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Littleport,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Littleport valuers.
Jude owned a 2 bedroom apartment in Littleport being sold with a lease of a few days over 72 years unexpired. Jude informally approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Jude to exercise his statutory right. Jude obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
Last Spring we were contacted by Mrs Rhiannon Torres , who moved into a purpose-built apartment in Littleport in October 1999. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Comparative residencies in Littleport with a long lease were in the region of £181,600. The average ground rent payable was £55 collected monthly. The lease expired in 2077. Taking into account 52 years outstanding we estimated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of expenses.
Last year we were approach by Mr H Ward , who moved into a first floor apartment in Littleport in July 2000. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparative premises in Littleport with 100 year plus lease were worth £285,000. The average amount of ground rent was £45 billed quarterly. The lease concluded on 3 November 2097. Given that there were 72 years as a residual term we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus fees.