The closer a domestic lease in Lingfield nears to zero years unexpired, the more it reduces the value of the property. Where the residual term has, more than 125 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending sooner as opposed to later. Many flat owners in Lingfield will meet the qualifying criteria; nevertheless a conveyancing solicitor can advise if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold premises in Lingfield with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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. |
| 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 |
Engaging our service will provide you better control over the value of your Lingfield leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy correspondence with the freeholder of her one bedroom flat in Lingfield, Lauren started the lease extension process as the eighty year threshold was fast approaching. The legal work was concluded in October 2005. The landlord’s costs were negotiated to approximately 650 GBP.
Last Winter we were contacted by Dr O Kelly , who completed a purpose-built apartment in Lingfield in May 2006. We are asked if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Similar residencies in Lingfield with 100 year plus lease were worth £193,400. The average ground rent payable was £65 invoiced every twelve months. The lease end date was on 28 February 2085. Given that there were 59 years unexpired we calculated the premium to the landlord for the lease extension to be within £21,900 and £25,200 not including costs.
Dr Samuel Stewart acquired a one bedroom flat in Lingfield in May 2012. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Identical residencies in Lingfield with an extended lease were valued about £255,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease came to a finish on 15 October 2096. Taking into account 70 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £10,500 and £12,000 exclusive of costs.