Lingfield leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Lingfield tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Lingfield you would be well advised to check if your lease has between seventy and 90 years left. There are compelling reasons why a Lingfield flat owner with a lease having around eighty years remaining should take steps to ensure that a lease extension is actioned without delay
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 Lingfield can be a difficult process. We recommend you get professional help from a conveyancer and valuer with experience in lease extensions.
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 a wealth of experience procuring Lingfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Arthur, came perilously close to the 80-year mark with the lease on his first floor apartment in Lingfield. In buying his home two decades ago, the unexpired term was of no significance. Luckily, he realised he needed to take action soon on Extending the lease. Arthur extended the lease at the eleventh hour last April. Arthur and the landlord who owned the flat above subsequently agreed on sum of £5,000 . If he failed to meet the deadline, the price would have escalated by a minimum £1,100.
In 2011 we were e-mailed by Mr and Mrs. U Mason who, having moved into a one bedroom flat in Lingfield in June 1997. The dilemma was if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Comparable properties in Lingfield with a long lease were worth £280,000. The average amount of ground rent was £55 invoiced per annum. The lease ended on 17 January 2104. Given that there were 78 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including costs.
Last Autumn we were called by Mr and Mrs. J Garcia , who owned a purpose-built flat in Lingfield in March 1996. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparable properties in Lingfield with an extended lease were valued around £191,000. The average amount of ground rent was £65 invoiced every twelve months. The lease finished on 1 February 2084. Taking into account 58 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £23,800 and £27,400 exclusive of legals.