Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Coningsby. Inevitably, the term of lease remaining shortens over time. This may slip by relatively unnoticed when the property has to be sold or refinanced. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension. Qualifying long lease owners in Coningsby have the legal entitlement to extend the lease for an additional 90 years under Leasehold Reform legislation. Do give careful consideration before delaying your Coningsby lease extension. Putting off the cost now simply increases the price you will eventually incur for a lease extension
Leasehold premises in Coningsby with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Coningsby leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Charlie, came seriously near to the eighty-year mark with the lease on his studio apartment in Coningsby. Having purchased his flat twenty years previously, the unexpired term was of no interest. Luckily, it dawned on him that he would soon be paying an inflated amount for a lease extension. Charlie extended the lease just ahead of time last January. Charlie and the freeholder eventually settled on an amount of £6,000 . If the lease had slipped lower than 80 years, the price would have increased by a minimum £1,000.
Last month we were e-mailed by Mrs Molly Roux , who completed a first floor flat in Coningsby in April 2007. The dilemma was if we could approximate the premium could be to prolong the lease by a further 90 years. Comparative premises in Coningsby with an extended lease were worth £223,400. The mid-range ground rent payable was £60 collected every twelve months. The lease ended in 2085. Taking into account 59 years unexpired we approximated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 not including legals.
Last Winter we were approach by Mr and Mrs. A Robinson , who completed a basement apartment in Coningsby in May 2011. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Identical flats in Coningsby with a long lease were worth £205,000. The mid-range amount of ground rent was £50 collected yearly. The lease terminated in 2105. Considering the 79 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including legals.