The market value of a leasehold property in Great Linford depends on how many years the lease has remaining. If it is close to or less than eighty years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is preferable to start the process of extending the lease is when the lease still has 82 years remaining so that formalities can be addressed in advance of the 80 year cut off point. Statute entitles Great Linford qualifying lessees to obtain a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Great Linford with over one hundred years outstanding 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 reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Great Linford,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Great Linford valuers.
In the wake of 9 months of protracted correspondence with the freeholder of her purpose-built apartment in Great Linford, Jessica started the lease extension process just as her lease was coming close to the critical 80-year deadline. The legal work was finalised in November 2012. The landlord’s costs were kept to an absolute minimum.
Dr Ryan David was assigned a lease of a first floor apartment in Great Linford in September 2001. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable premises in Great Linford with a long lease were worth £290,000. The mid-range ground rent payable was £45 collected every twelve months. The lease lapsed on 4 August 2099. Taking into account 73 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.
Last month we were contacted by Mr and Mrs. J Allen , who acquired a garden flat in Great Linford in January 1998. We are asked if we could estimate the price would be to extend the lease by 90 years. Comparative flats in Great Linford with a long lease were valued around £240,600. The mid-range amount of ground rent was £60 billed yearly. The lease terminated on 16 May 2088. Considering the 62 years remaining we calculated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 plus fees.