The market value of a leasehold property in Littleport is impacted by how long the lease has left to run. If it is close to or less than eighty years you should envisage problems on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be addressed well before the eighty year mark. Current legislation entitles Littleport qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a further term of ninety years. The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Littleport with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Engaging our service gives you enhanced control over the value of your Littleport leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of protracted discussions with the landlord of her ground floor flat in Littleport, Katie commenced the lease extension process just as the lease was approaching the critical eighty-year mark. The transaction was concluded in September 2008. The landlord’s charges were kept to an absolute minimum.
Last Autumn we were contacted by Mrs U Norbert , who was assigned a lease of a purpose-built apartment in Littleport in August 2000. The dilemma was if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Identical properties in Littleport with 100 year plus lease were worth £290,000. The average amount of ground rent was £45 collected per annum. The lease expired on 12 April 2099. Given that there were 73 years as a residual term we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including professional charges.
Last year we were contacted by Mrs Emily Davis , who moved into a newly refurbished flat in Littleport in May 1997. The dilemma was if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Comparative flats in Littleport with a long lease were valued around £240,600. The average amount of ground rent was £60 invoiced monthly. The lease finished on 1 July 2088. Given that there were 62 years unexpired we calculated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of fees.