Great Linford leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Great Linford residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Great Linford you really ought to investigate if your lease has between seventy and ninety years left. There are compelling reasons why a Great Linford leaseholder with a lease having around 80 years remaining should take steps to make sure that a lease extension is put in place without delay
Leasehold residencies in Great Linford with in excess of 100 years outstanding on the lease are sometimes referred to as ‘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 |
|---|---|
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The lawyers that we work with handle Great Linford 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 lawyer we work with provide it.
Hugo owned a high value apartment in Great Linford on the market with a lease of fraction over 59 years left. Hugo on an informal basis contacted his landlord a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 per annum. No ground rent would be due on a lease extension were Hugo to invoke his statutory right. Hugo obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.
Last Summer we were e-mailed by Mr M Pérez , who was assigned a lease of a one bedroom apartment in Great Linford in April 2006. The dilemma was if we could estimate the premium would be to prolong the lease by 90 years. Comparative residencies in Great Linford with a long lease were in the region of £285,000. The mid-range ground rent payable was £45 invoiced per annum. The lease terminated on 9 August 2097. Taking into account 71 years remaining we approximated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of expenses.
In 2014 we were called by Mr and Mrs. J James who, having acquired a studio flat in Great Linford in July 2003. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar properties in Great Linford with a long lease were valued about £225,800. The mid-range amount of ground rent was £60 billed quarterly. The lease ended on 13 October 2086. Having 60 years unexpired we approximated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 exclusive of professional charges.