The value of Linton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase significantly once the remaining term is less than eighty years
It is generally considered that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
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. |
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. |
Godiva Mortgages | 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. |
Halifax | Minimum 70 years from the date of the mortgage. |
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. |
Lease extensions in Linton can be a difficult process. We recommend you procure guidance from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Linton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Lucas was the the leasehold owner of a 2 bedroom flat in Linton being sold with a lease of a few days over 59 years unexpired. Lucas on an informal basis spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Lucas to invoke his statutory right. Lucas obtained expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Dr George Gunderson purchased a garden apartment in Linton in August 1997. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparative premises in Linton with 100 year plus lease were in the region of £210,000. The mid-range amount of ground rent was £50 collected yearly. The lease came to a finish on 17 August 2104. Having 80 years remaining we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of costs.
Last Winter we were phoned by Mr and Mrs. M Petit , who owned a garden flat in Linton in February 1997. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Identical homes in Linton with a long lease were worth £280,000. The mid-range amount of ground rent was £45 billed monthly. The lease expiry date was in 2093. Having 69 years outstanding we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including expenses.