With a residential leasehold property in Leconfield, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than 80 years remaining. Residents in Leconfield with a lease drawing near to 81 years left should seriously think of extending it sooner rather than later. Once a lease has under eighty years left, under the current legislation the landlord is entitled to calculate and charge a greater premium, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold properties in Leconfield with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Lease extensions in Leconfield can be a difficult process. We recommend you get professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Leconfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Nathan owned a studio apartment in Leconfield being sold with a lease of a few days over 72 years remaining. Nathan informally approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be payable on a lease extension were Nathan to exercise his statutory right. Nathan procured expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
Last year we were e-mailed by Mr and Mrs. W Parker , who purchased a studio apartment in Leconfield in March 2010. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Comparative properties in Leconfield with 100 year plus lease were in the region of £166,400. The average amount of ground rent was £60 invoiced per annum. The lease ran out in 2079. Having 54 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 not including expenses.
Dr Oscar Fournier was assigned a lease of a ground floor apartment in Leconfield in March 2002. The dilemma was if we could estimate the price could be for a ninety year lease extension. Comparable premises in Leconfield with a long lease were worth £227,800. The mid-range ground rent payable was £45 billed every twelve months. The lease expiry date was in 2090. Given that there were 65 years outstanding we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus fees.