The value of Littleport leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase significantly once the unexpired lease term is below than eighty years
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Littleport can be a difficult process. We recommend you obtain guidance from a lawyer 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 in-depth market knowledge dealing with Littleport lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of lengthy correspondence with the landlord of her basement flat in Littleport, Amy commenced the lease extension process just as her lease was nearing the all-important 80-year threshold. The legal work was concluded in September 2014. The freeholder’s costs were negotiated to under 500 pounds.
Last Winter we were e-mailed by Ms Abbie White , who took over the lease of a studio flat in Littleport in June 1998. The question was if we could shed any light on how much (roughly) price would be to extend the lease by 90 years. Identical premises in Littleport with 100 year plus lease were in the region of £201,200. The mid-range ground rent payable was £55 invoiced every twelve months. The lease terminated on 19 October 2082. Considering the 56 years unexpired we calculated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of fees.
Dr F Adams took over the lease of a first floor flat in Littleport in March 2008. The question was if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Similar flats in Littleport with a long lease were valued about £300,000. The average ground rent payable was £50 billed per annum. The lease ended on 19 September 2102. Taking into account 76 years as a residual term we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of expenses.