With a residential leasehold property in Lincoln, you are actually purchasing a right to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than eighty years remaining. Residents in Lincoln with a lease nearing 81 years left should seriously consider extending it without delay. Once the lease term has below 80 years left, under the current legislation the freeholder is entitled to calculate and charge a greater premium, based on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Lincoln,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Lincoln valuers.
Last Winter Jackson, came very close to the 80-year mark with the lease on his ground floor apartment in Lincoln. In buying his home 18 years previously, the length of the lease was of no interest. Fortunately, he recognised he would soon be paying way over the odds for a lease extension. Jackson extended the lease just under the wire last June. Jackson and the landlord ultimately settled on an amount of £5,000 . If he had missed the deadline, the price would have become more costly by at least £900.
Last Winter we were called by Dr Reuben Stewart , who purchased a garden apartment in Lincoln in September 2003. The dilemma was if we could approximate the price would likely be to prolong the lease by ninety years. Identical properties in Lincoln with an extended lease were in the region of £198,800. The mid-range ground rent payable was £55 invoiced every twelve months. The lease finished on 22 October 2080. Taking into account 55 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 plus costs.
Dr Max Cooper was assigned a lease of a one bedroom flat in Lincoln in June 2010. The question was if we could estimate the premium would be to prolong the lease by ninety years. Comparative homes in Lincoln with a long lease were valued around £295,000. The mid-range ground rent payable was £50 invoiced monthly. The lease finished on 14 September 2100. Taking into account 75 years left we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of fees.