The market value of Great Linford leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate materialy once the unexpired lease term is less than eighty years
Leasehold residencies in Great Linford with more than one hundred years outstanding 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 upside in buying 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | 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 |
Irrespective of whether you are a tenant or a landlord in Great Linford,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Great Linford valuers.
Arthur owned a high value apartment in Great Linford being marketed with a lease of a little over fifty eight years outstanding. Arthur informally contacted his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Arthur to invoke his statutory right. Arthur obtained expert advice and secured satisfactory deal without going to tribunal and readily saleable.
Last Winter we were contacted by Mr and Mrs. H Taylor , who was assigned a lease of a basement flat in Great Linford in February 2004. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical residencies in Great Linford with an extended lease were in the region of £171,800. The mid-range ground rent payable was £55 invoiced every twelve months. The lease ended in 2075. Taking into account 50 years remaining we approximated the compensation to the freeholder to extend the lease to be within £33,300 and £38,400 not including professional charges.
Mr Ben Parker purchased a basement apartment in Great Linford in November 2006. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Comparative residencies in Great Linford with a long lease were worth £280,000. The mid-range ground rent payable was £45 invoiced yearly. The lease finished on 7 July 2095. Taking into account 70 years as a residual term we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of fees.