The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Lincoln may extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Do give careful consideration before delaying your Lincoln lease extension. Postponing the costs now simply increases the price you will ultimately be required to pay to extend the lease.
Leasehold residencies in Lincoln with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate 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. |
| Birmingham Midshires | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Lincoln can be a difficult process. We recommend you get guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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 dealing with Lincoln lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jamie was the the leasehold proprietor of a conversion apartment in Lincoln on the market with a lease of fraction over sixty years left. Jamie on an informal basis spoke with his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Jamie to invoke his statutory right. Jamie obtained expert advice and secured satisfactory deal without going to tribunal and sell the flat.
In 2010 we were e-mailed by Dr Alexandra Simon who, having acquired a one bedroom flat in Lincoln in June 2008. We are asked if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparable flats in Lincoln with 100 year plus lease were worth £295,000. The average ground rent payable was £45 invoiced quarterly. The lease elapsed on 24 February 2099. Given that there were 74 years as a residual term we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus costs.
Last year we were e-mailed by Dr Alex Ali , who was assigned a lease of a first floor flat in Lincoln in May 2012. The question was if we could estimate the price would likely be for a ninety year extension to my lease. Comparative premises in Lincoln with an extended lease were in the region of £243,000. The mid-range ground rent payable was £65 invoiced monthly. The lease expired on 14 September 2088. Considering the 63 years outstanding we estimated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 plus expenses.