Great Linford leases on residential deteriorating in value. Where your lease has approximately ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you begin paying an additional element called marriage value. Leasehold owners in Great Linford will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In certain situations you may not qualify. There are also strict timetables and steps to comply with once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with undertake 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 lawyer we work with provide it.
Mason was the the leasehold proprietor of a conversion apartment in Great Linford being sold with a lease of just over fifty eight years unexpired. Mason on an informal basis spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Mason to invoke his statutory right. Mason procured expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
In 2011 we were contacted by Ms Eleanor González who, having bought a first floor apartment in Great Linford in July 2005. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparative residencies in Great Linford with an extended lease were in the region of £275,000. The average amount of ground rent was £65 invoiced monthly. The lease elapsed on 28 November 2093. Taking into account 68 years remaining we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus legals.
In 2009 we were phoned by Mr and Mrs. G Thompson who, having bought a basement apartment in Great Linford in May 2002. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Identical homes in Great Linford with an extended lease were worth £208,600. The average ground rent payable was £60 collected quarterly. The lease terminated in 2082. Taking into account 57 years left we calculated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 not including costs.