Unfortunately that a Coningsby residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Coningsby property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If the number of years remaining drops under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Coningsby will be able to extend under the legislation; however a lawyer should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold properties in Coningsby with over 100 years left 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 property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date 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. |
Lease extensions in Coningsby can be a difficult process. We recommend you procure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Coningsby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy correspondence with the landlord of her ground floor flat in Coningsby, Lauren started the lease extension process just as the lease was approaching the all-important 80-year mark. The transaction was finalised in June 2012. The landlord’s costs were negotiated to less than 700 GBP.
In 2010 we were approached by Mrs Sophia Bailey who, having bought a ground floor apartment in Coningsby in August 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Similar residencies in Coningsby with 100 year plus lease were worth £295,000. The average ground rent payable was £45 invoiced per annum. The lease finished on 2 July 2100. Taking into account 74 years outstanding we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.
In 2014 we were called by Dr F Thompson who, having completed a ground floor flat in Coningsby in July 2008. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparative properties in Coningsby with a long lease were worth £243,000. The average amount of ground rent was £65 invoiced annually. The lease ran out on 1 August 2089. Having 63 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 plus professional charges.