With a residential leasehold property in Coningsby, you are actually buying a right to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than eighty years remaining. Residents in Coningsby with a lease drawing near to 81 years left should seriously consider extending it without delay. When the lease term has under eighty years left, under the relevant Act the freeholder is entitled to calculate and levy a greater premium, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Coningsby with more than one hundred years outstanding 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 premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Coningsby,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Coningsby valuers.
In 2014 Ethan, started to get close to the 80-year mark with the lease on his studio apartment in Coningsby. Having bought his flat two decades ago, the length of the lease was of little bearing. Fortunately, he realised he would soon be paying an inflated amount for Extending the lease. Ethan arranged for a lease extension at the eleventh hour last July. Ethan and the landlord who owned the flat above in the end settled on the final figure of £6,000 . If the lease had gone lower than eighty years, the price would have escalated by a minimum £950.
In 2011 we were contacted by Ms O Reed who, having moved into a purpose-built flat in Coningsby in August 2010. The question was if we could estimate the price could be for a ninety year lease extension. Similar flats in Coningsby with 100 year plus lease were valued about £200,000. The average amount of ground rent was £50 billed quarterly. The lease elapsed in 2104. Considering the 78 years left we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus legals.
In 2011 we were contacted by Mr H Moore who, having completed a newly refurbished flat in Coningsby in May 1995. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Identical residencies in Coningsby with a long lease were worth £267,600. The average ground rent payable was £65 invoiced every twelve months. The lease concluded in 2093. Taking into account 67 years outstanding we estimated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 not including expenses.