Looe leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Looe enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Looe you really ought to investigate if your lease has between seventy and 90 years left. There are compelling reasons why a Looe leaseholder with a lease having around 80 years unexpired should take steps to ensure that a lease extension is put in place without delay
Leasehold properties in Looe with more than 100 years remaining on the lease are sometimes 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 reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Looe,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Looe valuers.
Ali was the the leasehold owner of a 2 bedroom flat in Looe being sold with a lease of a little over fifty eight years left. Ali on an informal basis approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ali to invoke his statutory right. Ali obtained expert legal guidance and secured satisfactory resolution informally and sell the property.
Mr Evan Williams acquired a one bedroom flat in Looe in February 1997. The question was if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Similar flats in Looe with 100 year plus lease were valued about £257,800. The mid-range ground rent payable was £65 collected every twelve months. The lease ran out in 2090. Considering the 65 years left we approximated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 exclusive of costs.
Last Winter we were e-mailed by Mr and Mrs. W Díaz , who took over the lease of a one bedroom apartment in Looe in October 1998. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Identical flats in Looe with a long lease were valued about £191,400. The mid-range ground rent payable was £55 billed every twelve months. The lease lapsed on 26 October 2079. Taking into account 54 years remaining we estimated the premium to the landlord to extend the lease to be between £34,200 and £39,600 plus fees.