When it comes to residential leasehold premises in Great Linford, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially once there are fewer than 80 years left. Residents in Great Linford with a lease approaching 81 years remaining should seriously think of extending it sooner than later. When a lease has under eighty years left, under the relevant Act the freeholder is entitled to calculate and levy a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle Great Linford 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 conveyancer we work with provide it.
Dexter was the the leasehold proprietor of a conversion apartment in Great Linford on the market with a lease of a few days over 72 years remaining. Dexter informally spoke with his freeholder being a well known London-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 per annum. No ground rent would be payable on a lease extension were Dexter to exercise his statutory right. Dexter procured expert legal guidance and secured satisfactory deal informally and sell the flat.
Last Spring we were called by Mr and Mrs. G Martin , who acquired a one bedroom apartment in Great Linford in October 1997. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Identical flats in Great Linford with 100 year plus lease were valued around £300,000. The mid-range ground rent payable was £50 billed yearly. The lease came to a finish on 26 November 2101. Considering the 75 years unexpired we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including legals.
Dr C Wilson bought a recently refurbished apartment in Great Linford in April 2009. The question was if we could approximate the premium would likely be for a 90 year extension to my lease. Similar homes in Great Linford with an extended lease were valued around £250,400. The average amount of ground rent was £65 invoiced yearly. The lease end date was on 3 April 2090. Taking into account 64 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 plus professional charges.