Linslade leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Linslade tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Linslade you should see if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Linslade,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Linslade valuers.
16 months ago Luca, started to get near to the eighty-year threshold with the lease on his one bedroom flat in Linslade. Having purchased his flat two decades ago, the unexpired term was of little concern. Thankfully, it dawned on him that he would soon be paying an inflated amount for a lease extension. Luca arranged for a lease extension just ahead of time in May. Luca and the freeholder via the managing agents in the end settled on a premium of £5,000 . If the lease had slid lower than eighty years, the price would have escalated by a minimum £1,075.
Last year we were e-mailed by Dr Isabel Bailey , who took over the lease of a purpose-built flat in Linslade in July 2012. The question was if we could estimate the price would be for a 90 year extension to my lease. Comparative premises in Linslade with 100 year plus lease were worth £300,000. The mid-range ground rent payable was £50 collected every twelve months. The lease elapsed in 2100. Having 75 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including legals.
Last July we were e-mailed by Dr Oliver Flores , who was assigned a lease of a purpose-built apartment in Linslade in June 2009. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Identical flats in Linslade with a long lease were worth £250,400. The average ground rent payable was £65 billed every twelve months. The lease concluded in 2089. Having 64 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 exclusive of fees.