When it comes to long leasehold premises in Lindfield, you are actually purchasing an entitlement to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are less than eighty years remaining. Anyone in Lindfield with a lease drawing near to 81 years remaining should seriously think of extending it without delay. Once a lease has below eighty years left, under the relevant statute the freeholder is entitled to calculate and demand a larger premium, based on a technical computation, known as “marriage value” which is payable.
Leasehold residencies in Lindfield with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
Irrespective of whether you are a tenant or a landlord in Lindfield,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Lindfield valuers.
Half a year ago Blake, came critically near to the 80-year mark with the lease on his first floor apartment in Lindfield. Having purchased his home two decades ago, the length of the lease was of no significance. As luck would have it, he recognised he would imminently be paying an escalated premium for Extending the lease. Blake extended the lease just under the wire in August. Blake and the landlord subsequently agreed on sum of £5,500 . If the lease had descended lower than eighty years, the figure would have escalated by at least £1,100.
In 2010 we were approached by Dr Tommy Girard who, having bought a first floor flat in Lindfield in August 1999. We are asked if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Comparative flats in Lindfield with a long lease were worth £210,600. The average ground rent payable was £45 invoiced monthly. The lease came to a finish in 2088. Given that there were 62 years unexpired we approximated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 plus fees.
Ms O Martinez owned a newly refurbished apartment in Lindfield in June 2007. We are asked if we could estimate the price would likely be for a 90 year lease extension. Similar premises in Lindfield with a long lease were worth £265,000. The mid-range ground rent payable was £50 billed annually. The lease elapsed in 2099. Taking into account 73 years outstanding we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of legals.