There is no doubt about it a leasehold flat or house in Linslade is a wasting asset as a result of the diminishing lease term. Where the lease has, over 99 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should extend the lease sooner rather than later. Most flat owners in Linslade will meet the qualifying criteria; however a lawyer can advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
The lawyers that we work with undertake Linslade lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Eliot was the the leasehold proprietor of a studio apartment in Linslade being marketed with a lease of just over 61 years unexpired. Eliot on an informal basis spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £50 annually. Ordinarily, ground rent would not be payable on a lease extension were Eliot to invoke his statutory right. Eliot procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.
In 2013 we were phoned by Dr Morgan Norbert who, having acquired a garden flat in Linslade in July 1998. We are asked if we could approximate the price would be to extend the lease by an additional years. Identical homes in Linslade with a long lease were in the region of £265,200. The average ground rent payable was £65 billed yearly. The lease expiry date was in 2092. Taking into account 66 years left we calculated the premium to the freeholder to extend the lease to be between £15,200 and £17,600 not including legals.
Last Christmas we were contacted by Mrs V Howard , who owned a garden flat in Linslade in March 2012. The question was if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Identical properties in Linslade with a long lease were valued about £201,200. The mid-range amount of ground rent was £55 invoiced yearly. The lease finished on 22 August 2082. Taking into account 56 years remaining we estimated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including fees.