When it comes to domestic leasehold property in Littleport, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater particularly when there are less than eighty years left. Leasehold owners in Littleport with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. When a lease has below 80 years remaining, under the relevant Act the freeholder is entitled to calculate and levy a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is generally accepted that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Littleport can be a difficult process. We recommend you get guidance 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 procuring Littleport lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Aarav, came precariously near to the 80-year threshold with the lease on his one bedroom apartment in Littleport. In buying his property 19 years previously, the length of the lease was of minimal significance. by good luck, he became aware that he needed to take action soon on Extending the lease. Aarav extended the lease just in the nick of time last August. Aarav and the landlord who owned the flat above in the end agreed on a premium of £6,000 . If the lease had descended below 80 years, the figure would have become more costly by at least £1,125.
Mr and Mrs. A Ali was assigned a lease of a one bedroom flat in Littleport in August 2011. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical properties in Littleport with an extended lease were valued around £260,200. The average ground rent payable was £65 billed every twelve months. The lease ran out in 2091. Considering the 66 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £16,200 and £18,600 not including professional charges.
Mrs M Baker purchased a garden flat in Littleport in September 2008. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative properties in Littleport with a long lease were valued about £198,800. The mid-range ground rent payable was £55 collected monthly. The lease finished on 21 February 2080. Taking into account 55 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 exclusive of legals.