As the the remaining lease term of a Leconfield residential lease decreases so does its value and therefore the value of your property. If the residual term has, over 99 years remaining then this decrease may be fractional however there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Many flat owners in Leconfield will meet the qualifying criteria; that being said a conveyancer can advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
Using our service will provide you increased control over the value of your Leconfield leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Joshua owned a high value apartment in Leconfield on the market with a lease of a few days over 59 years unexpired. Joshua informally spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Joshua to invoke his statutory right. Joshua obtained expert advice and was able to make an informed judgement and handle with the matter and sell the property.
Mr and Mrs. E Moreau moved into a garden apartment in Leconfield in September 2009. The question was if we could estimate the price would be for a ninety year lease extension. Comparative premises in Leconfield with an extended lease were in the region of £183,600. The average amount of ground rent was £65 invoiced yearly. The lease ended on 2 July 2083. Given that there were 57 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of professional charges.
Last Christmas we were contacted by Mr and Mrs. W Taylor , who took over the lease of a first floor flat in Leconfield in August 2001. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparative properties in Leconfield with 100 year plus lease were in the region of £245,000. The mid-range ground rent payable was £50 invoiced monthly. The lease terminated on 5 March 2094. Considering the 68 years remaining we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.