Lincoln leases on domestic properties are gradually losing value. if your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Lincoln will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In certain circumstances you may not be entitled. There are prescribed timetables and formalities to comply with once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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. |
Lease extensions in Lincoln can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor with experience in this area.
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 2014 Max, started to get close to the eighty-year mark with the lease on his two bedroom apartment in Lincoln. Having purchased his flat two decades ago, the lease term was of minimal concern. Thankfully, he noticed he needed to take action soon on Extending the lease. Max was able to extend his lease just under the wire in July. Max and the landlord who owned the flat above in the end settled on an amount of £6,000 . If he had missed the deadline, the sum would have increased by at least £1,025.
Dr Ibrahim Moreau completed a first floor flat in Lincoln in April 2009. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Comparative properties in Lincoln with an extended lease were in the region of £225,800. The mid-range amount of ground rent was £60 billed annually. The lease ended on 14 August 2086. Taking into account 60 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 not including legals.
Last Winter we were phoned by Mr C Wright , who took over the lease of a ground floor flat in Lincoln in June 2004. The question was if we could estimate the price would likely be for a ninety year extension to my lease. Identical residencies in Lincoln with an extended lease were in the region of £210,000. The mid-range amount of ground rent was £50 billed quarterly. The lease came to a finish in 2106. Taking into account 80 years remaining we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including expenses.