It’s an underpublicised truth that a Leconfield residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Leconfield property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. If the number of years remaining drops under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Leconfield will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold premises in Leconfield with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Leconfield,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 experience and the close ties they enjoy with Leconfield valuers.
Off the back of unsuccessful discussions with the landlord of her purpose-built flat in Leconfield, Rachel commenced the lease extension process just as her lease was coming close to the all-important 80-year threshold. The lease extension was concluded in February 2012. The landlord’s costs were restricted to less than 450 pounds.
Last Christmas we were called by Mrs Alice James , who acquired a one bedroom flat in Leconfield in January 2006. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Identical homes in Leconfield with an extended lease were valued around £275,000. The average ground rent payable was £55 invoiced monthly. The lease terminated in 2102. Given that there were 76 years left we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.
Last Christmas we were called by Mr M Thompson , who owned a basement flat in Leconfield in June 2003. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Identical premises in Leconfield with an extended lease were valued about £176,200. The average ground rent payable was £65 billed quarterly. The lease expired on 22 August 2082. Having 56 years outstanding we calculated the compensation to the landlord to extend the lease to be between £29,500 and £34,000 exclusive of costs.