There is no doubt about it a leasehold property in Leconfield is a wasting asset as a result of the shortening lease. If the lease has, beyond 100 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending sooner rather than later. Most flat owners in Leconfield will meet the qualifying criteria; however a conveyancing solicitor can advise whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold properties in Leconfield with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers 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 lawyer we work with provide it.
During the course of the last few months Samuel, came dangerously close to the 80-year mark with the lease on his leasehold flat in Leconfield. Having purchased his home 18 years ago, the lease term was of little importance. Fortunately, he realised he would soon be paying way over the odds for a lease extension. Samuel arranged for a lease extension just in the nick of time last May. Samuel and the landlord who owned the flat above ultimately settled on the final figure of £5,500 . If the lease had gone to less than eighty years, the price would have gone up by at least £975.
Last month we were contacted by Mr and Mrs. M Jones , who purchased a studio flat in Leconfield in July 2009. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparative flats in Leconfield with an extended lease were valued around £168,800. The mid-range amount of ground rent was £60 collected quarterly. The lease lapsed on 25 July 2081. Given that there were 55 years unexpired we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of expenses.
Dr L Edwards owned a purpose-built apartment in Leconfield in September 2005. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar premises in Leconfield with 100 year plus lease were worth £235,200. The average ground rent payable was £45 invoiced quarterly. The lease concluded in 2092. Having 66 years unexpired we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus fees.