As the the remaining lease term of a Leconfield domestic lease diminished so does its value and therefore the value of your property. If the residual term has, beyond 100 years to run then this decrease may be negligible that being said there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease without delay. Most flat owners in Leconfield will meet the qualifying criteria; nevertheless a conveyancing solicitor should be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Leconfield,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Leconfield valuers.
Last October Tyler, started to get near to the eighty-year threshold with the lease on his ground floor flat in Leconfield. Having purchased his property 18 years ago, the unexpired term was of minimal importance. Luckily, he became aware that he would imminently be paying an inflated amount for Extending the lease. Tyler arranged for a lease extension at the eleventh hour last July. Tyler and the freeholder via the management company in the end settled on sum of £5,500 . If he had missed the deadline, the premium would have increased by a minimum £875.
In 2013 we were e-mailed by Mr and Mrs. F Díaz who, having purchased a one bedroom apartment in Leconfield in September 2011. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Comparative flats in Leconfield with 100 year plus lease were valued around £264,000. The mid-range amount of ground rent was £60 collected annually. The lease lapsed in 2079. Considering the 53 years outstanding we approximated the compensation to the landlord for the lease extension to be within £37,100 and £42,800 not including fees.
Last year we were contacted by Mr Benjamin Mason , who moved into a one bedroom apartment in Leconfield in September 1995. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Identical properties in Leconfield with 100 year plus lease were worth £220,400. The average ground rent payable was £45 billed every twelve months. The lease expired on 24 April 2090. Having 64 years outstanding we calculated the premium to the landlord to extend the lease to be between £16,200 and £18,600 plus legals.