Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Leconfield. Inevitably, the length of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the flat or house needs to be sold or refinanced. The shorter the lease the lower the value of the property and the more it will cost to obtain a lease extension. Qualifying leaseholders in Leconfield have the right to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Do give careful deliberation before putting off your Leconfield lease extension. Putting off the cost now simply increases the price you will ultimately incur for a lease extension
Leasehold residencies in Leconfield with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Leconfield,the lease extension solicitors that we work with will always be happy 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.
Subsequent to protracted correspondence with the freeholder of her purpose-built apartment in Leconfield, Millie started the lease extension process as the 80 year threshold was quickly nearing. The transaction completed in September 2009. The landlord’s costs were negotiated to about 650 pounds.
Last February we were phoned by Mr O Lee , who was assigned a lease of a one bedroom apartment in Leconfield in October 1997. The question was if we could estimate the premium would be to extend the lease by an additional years. Comparable homes in Leconfield with 100 year plus lease were in the region of £245,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease lapsed in 2094. Considering the 68 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.
In 2012 we were e-mailed by Dr Kayleigh Norbert who, having moved into a basement apartment in Leconfield in June 2010. We are asked if we could estimate the premium would be for a 90 year lease extension. Identical properties in Leconfield with a long lease were worth £285,000. The mid-range amount of ground rent was £55 collected yearly. The lease lapsed on 18 February 2105. Considering the 79 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 plus fees.