Littleport leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes 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. If you are a leasehold owner in Littleport you must see if your lease has between seventy and ninety years left. There are compelling reasons why a Littleport leaseholder with a lease having around eighty years left should take steps to ensure that a lease extension is effected without delay
Leasehold premises in Littleport with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
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.
Last year Dylan, came critically near to the eighty-year mark with the lease on his basement flat in Littleport. Having bought his flat twenty years previously, the unexpired term was of minimal bearing. by good luck, he realised he needed to take steps soon on a lease extension. Dylan arranged for a lease extension at the eleventh hour in April. Dylan and the landlord in the end settled on sum of £5,000 . If the lease had slipped lower than eighty years, the amount would have gone up by at least £1,050.
Last year we were contacted by Mr S Bertrand , who bought a garden flat in Littleport in September 2001. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparative residencies in Littleport with a long lease were worth £184,000. The average ground rent payable was £55 collected yearly. The lease came to a finish on 1 February 2078. Given that there were 53 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 not including legals.
Ms L Cook took over the lease of a newly refurbished apartment in Littleport in January 2007. The question was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Identical premises in Littleport with a long lease were valued about £290,000. The average ground rent payable was £45 collected monthly. The lease lapsed in 2098. Having 73 years outstanding we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.