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 your lease becomes more expensive. The majority of owners of residential leasehold property in Lingfield enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Lingfield you should check if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Lease extensions in Lingfield can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor 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 in-depth market knowledge dealing with Lingfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Noah owned a conversion apartment in Lingfield on the market with a lease of a little over fifty eight years remaining. Noah on an informal basis contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 annually. No ground rent would be payable on a lease extension were Noah to invoke his statutory right. Noah obtained expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
Last month we were e-mailed by Mr and Mrs. T Stewart , who acquired a one bedroom apartment in Lingfield in July 2008. We are asked if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Similar premises in Lingfield with a long lease were valued about £235,200. The mid-range amount of ground rent was £45 invoiced monthly. The lease expired on 23 September 2092. Having 66 years left we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus fees.
Ms Poppy Khan acquired a basement flat in Lingfield in March 1998. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparative flats in Lingfield with a long lease were valued around £280,000. The average amount of ground rent was £55 collected per annum. The lease came to a finish in 2103. Given that there were 77 years remaining we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including costs.