Littleport leases on domestic properties are gradually losing value. if your lease has about ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you begin incurring an additional element called marriage value. Flat owners in Littleport will usually be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In some circumstances you may not qualify. There are prescribed timetables and procedures to comply with once the process has started so it’s prudent to be guided by a lawyer during the process.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you better control over the value of your Littleport leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Jasper, started to get near to the eighty-year threshold with the lease on his leasehold apartment in Littleport. In buying his home 19 years ago, the length of the lease was of no importance. Thankfully, he recognised he needed to take action soon on Extending the lease. Jasper extended the lease just in the nick of time last May. Jasper and the landlord who owned the flat above ultimately settled on the final figure of £5,500 . If the lease had slid to less than eighty years, the figure would have become more costly by a minimum £1,125.
In 2009 we were approached by Dr Eli Turner who, having completed a basement flat in Littleport in October 2011. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by 90 years. Comparative flats in Littleport with a long lease were valued around £257,800. The average ground rent payable was £65 collected per annum. The lease elapsed on 13 November 2090. Considering the 65 years as a residual term we estimated the premium to the landlord for the lease extension to be within £18,100 and £20,800 plus costs.
In 2014 we were phoned by Ms Jade Lefèvre who, having purchased a purpose-built flat in Littleport in August 2005. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical flats in Littleport with a long lease were in the region of £191,400. The mid-range amount of ground rent was £55 billed every twelve months. The lease finished on 22 September 2079. Taking into account 54 years remaining we approximated the premium to the freeholder for the lease extension to be between £34,200 and £39,600 not including fees.