The closer a residential lease in Great Linford gets to zero years unexpired, the more it reduces the value of the property. Where the residual term has, more than one hundred years to run then this decrease may be of little impact however there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should consider extending sooner as opposed to later. Many flat owners in Great Linford will meet the qualifying criteria; nevertheless a conveyancer can advise if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Great Linford with over 100 years unexpired 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 upside in buying the freehold unless savings on ground rent and maintenance charges merit 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Great Linford can be a difficult process. We recommend you get guidance from a lawyer and valuer with experience in lease extensions.
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 dealing with 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.
Oscar owned a high value flat in Great Linford being sold with a lease of just over sixty years remaining. Oscar informally spoke with his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Oscar to exercise his statutory right. Oscar procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
In 2010 we were contacted by Mrs R Bonnet who, having purchased a one bedroom flat in Great Linford in March 2000. The question was if we could approximate the price would be for a ninety year lease extension. Comparable homes in Great Linford with an extended lease were worth £225,800. The mid-range amount of ground rent was £60 collected every twelve months. The lease elapsed on 27 March 2086. Taking into account 60 years outstanding we estimated the compensation to the landlord to extend the lease to be between £23,800 and £27,400 plus expenses.
Dr Sam Ward moved into a garden apartment in Great Linford in June 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Similar premises in Great Linford with an extended lease were in the region of £210,000. The mid-range ground rent payable was £50 billed quarterly. The lease expired on 19 March 2106. Having 80 years remaining we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus legals.