Littleport leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Littleport tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Littleport you really ought to check if your lease has between 70 and 90 years remaining. There are good reasons why a Littleport leaseholder with a lease having around eighty years unexpired should take action to ensure that a lease extension is put in place without delay
Leasehold premises in Littleport with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Littleport,the lease extension lawyers that we work with will always be willing 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.
Half a year ago Kai, came precariously near to the 80-year mark with the lease on his ground floor apartment in Littleport. In buying his flat two decades ago, the lease term was of little significance. As luck would have it, he realised he would imminently be paying an inflated amount for a lease extension. Kai extended the lease at the eleventh hour in September. Kai and the landlord in the end agreed on an amount of £5,500 . If he not met the deadline, the figure would have escalated by a minimum £1,075.
Last Spring we were approach by Dr Chelsea Moreau , who owned a garden flat in Littleport in July 2003. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by 90 years. Comparable homes in Littleport with a long lease were in the region of £218,400. The average amount of ground rent was £60 collected yearly. The lease finished in 2084. Taking into account 59 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 plus legals.
In 2014 we were e-mailed by Ms Kate Rose who, having owned a one bedroom flat in Littleport in March 2004. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by 90 years. Comparable flats in Littleport with 100 year plus lease were in the region of £205,000. The mid-range amount of ground rent was £50 billed annually. The lease terminated on 13 April 2104. Taking into account 79 years outstanding we approximated the compensation to the landlord for the lease extension to be within £7,600 and £8,800 exclusive of expenses.