It’s a harsh certainty that a Linslade residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Linslade property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining slips under eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Linslade will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer throughout the process.
Leasehold premises in Linslade with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you increased control over the value of your Linslade leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Evan owned a studio apartment in Linslade on the market with a lease of a little over 59 years outstanding. Evan on an informal basis approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Evan to invoke his statutory right. Evan procured expert legal guidance and secured satisfactory deal informally and readily saleable.
Last October we were contacted by Mr and Mrs. N Norbert , who purchased a garden flat in Linslade in August 2002. We are asked if we could approximate the price could be for a 90 year lease extension. Comparable homes in Linslade with a long lease were worth £213,600. The average ground rent payable was £60 collected quarterly. The lease ran out on 2 October 2083. Given that there were 57 years remaining we estimated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of expenses.
Ms Imogen Edwards completed a garden flat in Linslade in September 1995. The dilemma was if we could shed any light on how much (approximately) premium could be for a 90 year extension to my lease. Comparable residencies in Linslade with a long lease were worth £200,000. The mid-range ground rent payable was £50 billed every twelve months. The lease elapsed on 1 March 2103. Considering the 77 years as a residual term we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of expenses.