The re-sale value of a leasehold property in Leconfield depends on how long the lease has left to run. If it is close to or fewer than 80 years you should envisage difficulties on re-sale, so it is advisable to arrange for the lease to be extended before purchasing. Ideally one should start the lease extension process when a lease still has 82 years unexpired so that a lease extension can be concluded ahead of the eighty year mark. Statute enables Leconfield qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Leconfield with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Engaging our service will provide you better control over the value of your Leconfield leasehold, as your property will be more valuable and marketable in terms of lease length should you wish 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.
Thomas was the the leasehold proprietor of a conversion apartment in Leconfield being sold with a lease of a little over fifty eight years remaining. Thomas informally contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Thomas to invoke his statutory right. Thomas obtained expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2013 we were contacted by Mrs Nicole Norbert who, having owned a ground floor flat in Leconfield in February 1995. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Comparable homes in Leconfield with an extended lease were worth £227,800. The mid-range amount of ground rent was £45 billed every twelve months. The lease terminated on 10 March 2091. Given that there were 65 years as a residual term we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of costs.
Last March we were contacted by Dr Arthur Jones , who moved into a one bedroom flat in Leconfield in March 2011. We are asked if we could estimate the price would likely be to prolong the lease by a further 90 years. Comparable properties in Leconfield with a long lease were in the region of £275,000. The mid-range amount of ground rent was £55 collected monthly. The lease elapsed in 2102. Given that there were 76 years as a residual term we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.