Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Linslade. Clearly, the length of lease remaining shortens as time goes by. This is often overlooked and only becomes a problem when the flat or house has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Linslade have the legal entitlement to extend the lease for a further ninety years under statute. Do give due attention before putting off your Linslade lease extension. Putting off the cost now likely increases the price you will ultimately have to pay to extend your lease
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Engaging our service gives you enhanced control over the value of your Linslade leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Kian was the the leasehold owner of a conversion apartment in Linslade on the market with a lease of a few days over fifty eight years left. Kian on an informal basis contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Kian to invoke his statutory right. Kian procured expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.
In 2009 we were e-mailed by Mr and Mrs. Y Gunderson who, having completed a basement apartment in Linslade in March 2011. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative premises in Linslade with a long lease were worth £210,000. The average ground rent payable was £50 collected every twelve months. The lease expired in 2106. Having 80 years unexpired we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus expenses.
Last Christmas we were phoned by Mr and Mrs. I Bertrand , who bought a newly refurbished flat in Linslade in April 2003. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Identical properties in Linslade with a long lease were valued about £280,000. The mid-range amount of ground rent was £45 invoiced annually. The lease came to a finish in 2095. Taking into account 69 years outstanding we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including fees.