When it comes to long leasehold property in Great Linford, you are actually buying a right to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially once there are less than eighty years remaining. Leasehold owners in Great Linford with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. When the lease term has below eighty years left, under the current statute the landlord can calculate and charge a greater premium, assessed on a technical multiplication, known as “marriage value” which is due.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Great Linford,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Great Linford valuers.
Subsequent to lengthy correspondence with the landlord of her ground floor flat in Great Linford, Paige initiated the lease extension process as the 80 year mark was quickly nearing. The legal work was finalised in January 2011. The freeholder’s charges were kept to an absolute minimum.
In 2010 we were approached by Mr and Mrs. T Gómez who, having completed a first floor flat in Great Linford in August 2010. The question was if we could approximate the price could be for a 90 year extension to my lease. Comparative flats in Great Linford with a long lease were valued about £208,600. The average ground rent payable was £60 collected yearly. The lease elapsed on 25 May 2082. Having 57 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of fees.
In 2009 we were called by Mr and Mrs. H Jackson who, having completed a basement apartment in Great Linford in July 2010. The dilemma was if we could estimate the premium would be to extend the lease by a further 90 years. Similar flats in Great Linford with 100 year plus lease were valued about £200,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease finished on 2 October 2102. Considering the 77 years left we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of expenses.