Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Lindfield. Inevitably, the length of lease left shortens as time goes by. This may slip by relatively unnoticed when the property needs to be sold or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension. Qualifying leaseholders in Lindfield have the legal entitlement to extend the lease for an additional ninety years under Leasehold Reform legislation. Please give due consideration before delaying your Lindfield lease extension. Putting off that expense now likely increases the price you will ultimately incur for a lease extension
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Lindfield,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Lindfield valuers.
Last Christmas Luca, started to get close to the 80-year mark with the lease on his purpose- built apartment in Lindfield. In buying his property two decades ago, the unexpired term was of no bearing. Fortunately, he became aware that he needed to take steps soon on a lease extension. Luca was able to extend his lease at the eleventh hour last May. Luca and the landlord who owned the flat above in the end settled on sum of £5,500 . If the lease had gone lower than eighty years, the figure would have escalated by at least £1,075.
Ms Natalie Baker owned a purpose-built apartment in Lindfield in January 1997. The dilemma was if we could estimate the premium would likely be to extend the lease by ninety years. Similar residencies in Lindfield with a long lease were in the region of £255,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease finished on 7 July 2096. Taking into account 71 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.
Mrs Abigail Gómez purchased a ground floor apartment in Lindfield in October 2006. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical premises in Lindfield with an extended lease were in the region of £254,200. The average amount of ground rent was £60 billed monthly. The lease expired in 2076. Having 51 years unexpired we calculated the premium to the landlord to extend the lease to be within £43,700 and £50,600 plus fees.