When it comes to domestic leasehold property in Great Linford, you are actually buying an entitlement to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably when there are fewer than 80 years left. Leasehold owners in Great Linford with a lease nearing 81 years left should seriously consider extending it without delay. When a lease has under eighty years remaining, under the relevant legislation the landlord can calculate and levy a larger premium, based on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a landlord 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.
Last year Liam, started to get near to the 80-year threshold with the lease on his studio flat in Great Linford. In buying his flat two decades ago, the lease term was of no importance. As luck would have it, he recognised he needed to take steps soon on a lease extension. Liam arranged for a lease extension just under the wire in September. Liam and the freeholder ultimately settled on sum of £5,500 . If the lease had gone to less than 80 years, the amount would have escalated by a minimum £1,150.
In 2014 we were phoned by Mr and Mrs. P Garcia who, having completed a first floor flat in Great Linford in June 1997. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Similar residencies in Great Linford with an extended lease were worth £205,000. The mid-range amount of ground rent was £50 billed annually. The lease expired in 2105. Taking into account 79 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of legals.
In 2011 we were approached by Dr Andrew Martínez who, having moved into a ground floor flat in Great Linford in May 1996. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparable properties in Great Linford with 100 year plus lease were in the region of £275,000. The average ground rent payable was £65 invoiced per annum. The lease ended on 11 May 2094. Given that there were 68 years outstanding we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.