Linslade leases on domestic deteriorating in value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for your lease extension to take place before the term of the current lease dips under 80 years - otherwise a higher premium will be due. Leasehold owners in Linslade will usually qualify for a lease extension; however a solicitor will check if you qualify. In some situations you may not qualify. There are prescribed deadlines and steps to comply with once the process has started so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Regardless of whether you are a tenant or a landlord 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 experience and the close ties they enjoy with Linslade valuers.
Subsequent to unsuccessful negotiations with the freeholder of her first floor apartment in Linslade, Jasmine commenced the lease extension process just as the lease was coming close to the all-important 80-year mark. The transaction was finalised in November 2014. The freeholder’s charges were negotiated to below 600 GBP.
Last Winter we were approach by Mrs Alicia Walker , who was assigned a lease of a one bedroom flat in Linslade in July 2000. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Comparative homes in Linslade with 100 year plus lease were in the region of £174,200. The average ground rent payable was £55 collected quarterly. The lease ended on 20 June 2076. Given that there were 51 years remaining we calculated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 not including fees.
Last Autumn we were approach by Dr J Jones , who bought a basement flat in Linslade in August 1995. We are asked if we could estimate the price could be for a 90 year extension to my lease. Comparative homes in Linslade with a long lease were worth £285,000. The average ground rent payable was £45 billed monthly. The lease terminated on 13 November 2096. Having 71 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus legals.