It’s a harsh truth that a Great Linford residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Great Linford property market.Once your lease nears 85ish years, you should start thinking about a lease extension. If the number of years remaining slips under 80 years, you will then be required to pay half 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 extra value that a lease extension will add the property Most flat owners in Great Linford will be able to extend under the legislation; however a lawyer will be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold properties in Great Linford with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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. |
| National Westminster Bank | 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. |
Using our service will provide you enhanced control over the value of your Great Linford leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Theo, started to get near to the 80-year threshold with the lease on his leasehold flat in Great Linford. In buying his flat two decades ago, the lease term was of little relevance. Fortunately, he realised he needed to take action soon on Extending the lease. Theo arranged for a lease extension at the eleventh hour in March. Theo and the landlord in the end agreed on sum of £5,500 . If he failed to meet the deadline, the figure would have escalated by at least £975.
Mr Toby Lefèvre purchased a purpose-built apartment in Great Linford in February 2005. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by a further 90 years. Identical properties in Great Linford with a long lease were valued around £206,200. The average ground rent payable was £55 invoiced yearly. The lease finished on 3 February 2081. Taking into account 56 years left we approximated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 exclusive of professional charges.
Mr and Mrs. V Bennett purchased a purpose-built flat in Great Linford in November 2004. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Similar properties in Great Linford with an extended lease were valued about £300,000. The mid-range ground rent payable was £50 collected per annum. The lease elapsed on 15 February 2101. Considering the 76 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus expenses.