Lincoln leases on residential deteriorating in value. if your lease has in the region of 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the existing lease falls below 80 years - otherwise a higher premium will be due. Leasehold owners in Lincoln will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In some circumstances you may not be entitled. There are prescribed timetables and procedures to follow once the process is triggered so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Birmingham Midshires | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Lincoln can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in lease extensions.
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 Lincoln lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of lengthy discussions with the landlord of her leasehold flat in Lincoln, Bethany initiated the lease extension process just as her lease was approaching the crucial 80-year deadline. The legal work was finalised in March 2015. The landlord’s costs were restricted to less than 450 pounds.
In 2009 we were e-mailed by Mr and Mrs. P King who, having took over the lease of a garden flat in Lincoln in August 2006. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Identical premises in Lincoln with an extended lease were in the region of £240,600. The average amount of ground rent was £60 billed every twelve months. The lease finished on 4 March 2088. Considering the 62 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of professional charges.
In 2013 we were approached by Dr K Nguyen who, having acquired a first floor flat in Lincoln in October 1999. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Comparative homes in Lincoln with 100 year plus lease were valued about £174,200. The mid-range ground rent payable was £55 billed yearly. The lease terminated on 25 November 2077. Given that there were 51 years outstanding we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of costs.