On the balance of probabilities where you own a flat in Leconfield you actually own a long leasehold interest over your property
It is generally considered that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The lawyers that we work with procure Leconfield 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 conveyancer we work with provide it.
18 months ago Alfie, started to get close to the 80-year threshold with the lease on his one bedroom apartment in Leconfield. Having purchased his flat two decades ago, the lease term was of minimal relevance. by good luck, he noticed he needed to take steps soon on Extending the lease. Alfie was able to extend his lease at the eleventh hour last March. Alfie and the freeholder in the end agreed on an amount of £5,500 . If he not met the deadline, the amount would have escalated by a minimum £950.
In 2009 we were contacted by Dr B Gunderson who, having was assigned a lease of a recently refurbished apartment in Leconfield in June 1997. We are asked if we could estimate the premium could be for a 90 year extension to my lease. Comparable flats in Leconfield with an extended lease were worth £173,800. The average ground rent payable was £60 invoiced monthly. The lease ended on 25 September 2079. Considering the 55 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus expenses.
Last Spring we were contacted by Mr and Mrs. A Baker , who was assigned a lease of a one bedroom flat in Leconfield in April 2011. The question was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical homes in Leconfield with an extended lease were in the region of £235,200. The average amount of ground rent was £45 invoiced per annum. The lease ended on 28 November 2090. Taking into account 66 years left we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including professional charges.