On the balance of probabilities if you own a flat in Coningsby you actually own a long leasehold interest over your property
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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. |
| 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 |
The lawyers that we work with undertake Coningsby lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Dexter was the the leasehold owner of a 2 bedroom apartment in Coningsby on the market with a lease of a little over 72 years unexpired. Dexter informally contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Dexter to invoke his statutory right. Dexter obtained expert legal guidance and was able to make an informed judgement and handle with the matter and readily saleable.
In 2010 we were called by Mr and Mrs. C Mitchell who, having purchased a one bedroom apartment in Coningsby in January 2002. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable homes in Coningsby with a long lease were in the region of £208,600. The average ground rent payable was £60 billed per annum. The lease ran out on 25 July 2082. Considering the 57 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 not including expenses.
Last Summer we were phoned by Dr C Bonnet , who took over the lease of a basement apartment in Coningsby in November 1998. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Comparable flats in Coningsby with 100 year plus lease were worth £200,000. The average amount of ground rent was £50 billed per annum. The lease lapsed in 2102. Taking into account 77 years left we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus fees.