Leconfield leases on domestic properties are gradually losing value. if your lease has about 90 years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher amount will be due. Leasehold owners in Leconfield will mostly be legally entitled to a lease extension; however a solicitor will check if you qualify. In some cases you may not qualify. There are prescribed timetables and steps to comply with once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold premises in Leconfield with more than 100 years outstanding on the lease are often referred to as ‘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 reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
The conveyancing solicitors 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 conveyancing solicitor we work with provide it.
In 2014 Andrew, came perilously close to the eighty-year mark with the lease on his basement apartment in Leconfield. Having bought his home two decades ago, the lease term was of no bearing. Fortunately, he realised he would soon be paying an escalated premium for Extending the lease. Andrew extended the lease at the eleventh hour in April. Andrew and the landlord who owned the flat above subsequently settled on a premium of £6,000 . If the lease had descended lower than eighty years, the amount would have gone up by at least £875.
In 2011 we were contacted by Mrs Amy Scott who, having took over the lease of a studio flat in Leconfield in August 1996. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by an additional years. Comparative premises in Leconfield with 100 year plus lease were worth £193,400. The mid-range amount of ground rent was £65 billed annually. The lease ended on 27 March 2084. Taking into account 59 years remaining we calculated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 not including professional charges.
In 2014 we were contacted by Mr and Mrs. L Davis who, having owned a recently refurbished flat in Leconfield in June 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable flats in Leconfield with an extended lease were valued about £255,000. The mid-range amount of ground rent was £50 collected monthly. The lease concluded in 2095. Taking into account 70 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.