Unfortunately that a Great Linford residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Great Linford property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher premium will be payable. Most flat owners in Great Linford will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold properties in Great Linford with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Great Linford lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Following protracted correspondence with the landlord of her purpose-built apartment in Great Linford, Freya commenced the lease extension process just as her lease was approaching the crucial 80-year deadline. The legal work completed in October 2007. The landlord’s costs were kept to an absolute minimum.
In 2012 we were phoned by Ms Amber Bertrand who, having was assigned a lease of a garden apartment in Great Linford in April 2012. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Comparable homes in Great Linford with an extended lease were valued about £275,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease finished on 1 February 2094. Given that there were 69 years unexpired we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.
In 2011 we were called by Mrs D Sánchez who, having acquired a newly refurbished flat in Great Linford in October 2008. We are asked if we could approximate the premium would be to extend the lease by ninety years. Comparative premises in Great Linford with a long lease were in the region of £216,000. The average amount of ground rent was £60 invoiced monthly. The lease expired in 2083. Given that there were 58 years left we approximated the premium to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of costs.