Leconfield leases on residential properties are gradually losing value. if your lease has about 90 years unexpired, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Leconfield will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In certain situations you may not be entitled. There are prescribed timetables and steps to comply with once the process has started so it’s prudent to be guided by a conveyancer during the process.
Leasehold properties in Leconfield with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Leconfield leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful correspondence with the landlord of her leasehold apartment in Leconfield, Rosie started the lease extension process just as her lease was nearing the all-important eighty-year deadline. The transaction completed in November 2012. The freeholder’s costs were restricted to below 550 pounds.
In 2009 we were phoned by Mr and Mrs. K Bernard who, having completed a first floor flat in Leconfield in August 1999. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Identical premises in Leconfield with a long lease were valued about £203,200. The average ground rent payable was £65 collected quarterly. The lease finished on 10 August 2087. Having 61 years unexpired we estimated the premium to the landlord for the lease extension to be between £19,000 and £22,000 plus costs.
In 2013 we were phoned by Mr G Williams who, having moved into a garden apartment in Leconfield in August 2006. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparable properties in Leconfield with 100 year plus lease were in the region of £260,000. The average ground rent payable was £50 collected yearly. The lease ran out on 16 November 2098. Considering the 72 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.