The market value of Great Linford leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate materialy once the unexpired lease term is below than 80 years
Leasehold properties in Great Linford with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Great Linford can be a difficult process. We recommend you obtain guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Great Linford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Alex, started to get near to the 80-year threshold with the lease on his first floor flat in Great Linford. Having purchased his property two decades ago, the unexpired term was of little interest. Fortunately, he noticed he would imminently be paying way over the odds for a lease extension. Alex extended the lease just in the nick of time in April. Alex and the landlord who owned the flat above subsequently agreed on a premium of £5,500 . If he not met the deadline, the amount would have become more exhorbitant by a minimum £975.
In 2014 we were e-mailed by Dr K Flores who, having bought a recently refurbished flat in Great Linford in September 2004. The question was if we could estimate the premium would be for a 90 year extension to my lease. Comparative premises in Great Linford with 100 year plus lease were valued about £206,200. The mid-range ground rent payable was £55 collected annually. The lease ran out on 9 February 2082. Considering the 56 years outstanding we estimated the premium to the landlord for the lease extension to be within £31,400 and £36,200 plus legals.
In 2010 we were approached by Mr and Mrs. N Clarke who, having owned a studio apartment in Great Linford in February 2007. The dilemma was if we could approximate the premium would likely be to prolong the lease by ninety years. Comparative homes in Great Linford with 100 year plus lease were valued about £300,000. The mid-range amount of ground rent was £50 collected annually. The lease end date was on 7 November 2102. Having 76 years remaining we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including expenses.