The only way is down when it comes to Leconfield lease terms. Leconfield leaseholds that have a lease term lower than eighty years will drop in market price at a rapid rate, and the cost to extend your lease will go up.
It is generally accepted that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake 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.
Following protracted correspondence with the freeholder of her one bedroom flat in Leconfield, Samantha commenced the lease extension process as the 80 year mark was fast nearing. The transaction completed in July 2005. The freeholder’s charges were kept to an absolute minimum.
Last July we were approach by Dr L Clarke , who owned a newly refurbished flat in Leconfield in June 2010. The dilemma was if we could estimate the price would likely be to extend the lease by a further 90 years. Identical flats in Leconfield with an extended lease were worth £246,800. The mid-range amount of ground rent was £60 billed per annum. The lease termination date was in 2075. Taking into account 50 years remaining we approximated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 exclusive of fees.
In 2013 we were contacted by Dr Hunter Mercier who, having was assigned a lease of a garden flat in Leconfield in June 1996. We are asked if we could approximate the premium could be to extend the lease by 90 years. Identical residencies in Leconfield with 100 year plus lease were worth £203,200. The average ground rent payable was £65 collected per annum. The lease ended in 2086. Having 61 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 exclusive of costs.