The nearer a residential lease in Littleport nears to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, over 100 years remaining then this decrease may be fractional that being said there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease sooner as opposed to later. Many flat owners in Littleport will meet the qualifying criteria; nevertheless a conveyancer can advise if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Littleport with more than 100 years outstanding on the lease are sometimes 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 to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| 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. |
The lawyers that we work with undertake Littleport 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 lawyer we work with provide it.
Half a year ago Muhammad, came precariously near to the 80-year threshold with the lease on his leasehold apartment in Littleport. In buying his property two decades ago, the unexpired term was of no importance. Luckily, he noticed he needed to take steps soon on Extending the lease. Muhammad extended the lease at the eleventh hour in April. Muhammad and the freeholder subsequently agreed on the final figure of £6,000 . If he not met the deadline, the figure would have increased by at least £1,050.
Last Summer we were phoned by Mr and Mrs. Y Gómez , who purchased a first floor flat in Littleport in January 2007. The dilemma was if we could approximate the price could be for a ninety year lease extension. Comparable premises in Littleport with 100 year plus lease were valued about £233,200. The average ground rent payable was £60 collected per annum. The lease expired on 6 June 2086. Given that there were 61 years outstanding we estimated the premium to the freeholder for the lease extension to be between £22,800 and £26,400 exclusive of professional charges.
Last Christmas we were phoned by Dr A Hill , who completed a newly refurbished flat in Littleport in January 1999. The dilemma was if we could estimate the premium would be to extend the lease by ninety years. Comparable flats in Littleport with a long lease were valued about £166,800. The mid-range amount of ground rent was £50 collected annually. The lease expired on 10 April 2075. Considering the 50 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 not including legals.