There is no doubt about it a leasehold property in Leconfield is a wasting asset as a result of the shortening lease. Where the residual term has, over one hundred years to run then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. Most flat owners in Leconfield will meet the qualifying criteria; that being said a conveyancer should be able to confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Leconfield with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | 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. |
Retaining our service gives you better control over the value of your Leconfield leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of protracted discussions with the landlord of her first floor apartment in Leconfield, Georgina commenced the lease extension process just as the lease was coming close to the crucial 80-year deadline. The lease extension was concluded in February 2007. The freeholder’s costs were negotiated to a tad over six hundred pounds.
Ms Lauren Collins bought a studio flat in Leconfield in January 2002. The question was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Similar residencies in Leconfield with 100 year plus lease were worth £285,000. The average ground rent payable was £55 billed annually. The lease ended on 10 September 2106. Having 80 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including fees.
Ms F Davies owned a newly refurbished flat in Leconfield in May 2008. The question was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative properties in Leconfield with a long lease were valued about £200,800. The average ground rent payable was £65 collected per annum. The lease termination date was on 6 October 2086. Given that there were 60 years outstanding we approximated the premium to the landlord to extend the lease to be between £20,900 and £24,200 not including legals.