When it comes to long leasehold property in Leconfield, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than eighty years remaining. Anyone in Leconfield with a lease nearing 81 years remaining should seriously consider extending it sooner as opposed to later. When a lease has less than eighty years remaining, under the relevant statute the freeholder is entitled to calculate and levy a larger premium, based on a technical computation, known as “marriage value” which is due.
It is generally accepted that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Leconfield,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Leconfield valuers.
Liam was the the leasehold owner of a 2 bedroom apartment in Leconfield being sold with a lease of just over 59 years unexpired. Liam informally contacted his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Liam to invoke his statutory right. Liam procured expert advice and was able to make a more informed decision and deal with the matter and sell the property.
In 2011 we were approached by Mr and Mrs. W Alexander who, having acquired a basement flat in Leconfield in April 2011. The question was if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Similar flats in Leconfield with 100 year plus lease were worth £176,200. The mid-range ground rent payable was £65 invoiced quarterly. The lease lapsed on 8 November 2081. Having 56 years as a residual term we approximated the premium to the landlord to extend the lease to be between £29,500 and £34,000 not including professional charges.
In 2010 we were approached by Ms Rachael Edwards who, having was assigned a lease of a ground floor flat in Leconfield in July 1997. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by 90 years. Similar premises in Leconfield with an extended lease were valued around £242,600. The average ground rent payable was £45 collected per annum. The lease finished in 2092. Taking into account 67 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £11,400 and £13,200 exclusive of expenses.