Coningsby residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a period of years.
Leasehold residencies in Coningsby with more than 100 years unexpired on the lease are often 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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Coventry Building Society | 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Engaging our service gives you increased control over the value of your Coningsby leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful correspondence with the freeholder of her one bedroom apartment in Coningsby, Ellie initiated the lease extension process as the eighty year deadline was rapidly approaching. The legal work was finalised in June 2007. The freeholder’s costs were negotiated to a tad over five hundred GBP.
Mr and Mrs. S Davies took over the lease of a one bedroom flat in Coningsby in February 2008. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative flats in Coningsby with an extended lease were in the region of £240,600. The mid-range ground rent payable was £60 invoiced yearly. The lease concluded on 11 July 2087. Taking into account 62 years outstanding we approximated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 not including fees.
Mrs Courtney Johnson owned a basement flat in Coningsby in July 2010. We are asked if we could estimate the premium could be to prolong the lease by 90 years. Comparative premises in Coningsby with an extended lease were in the region of £174,200. The mid-range amount of ground rent was £55 billed monthly. The lease expired in 2076. Having 51 years left we calculated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 not including expenses.