The re-sale value of a leasehold property in Leconfield depends on how long the lease has left to run. If it is close to or less than 80 years you should envisage difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is ideal to start the lease extension process when a lease still has 82 years unexpired so that a lease extension can be finalised prior to the 80 year mark. Current legislation enables Leconfield qualifying lessees to acquire a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Leconfield with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
Engaging our service gives you enhanced control over the value of your Leconfield leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Adam owned a 2 bedroom apartment in Leconfield being sold with a lease of just over fifty eight years remaining. Adam on an informal basis approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 yearly. No ground rent would be due on a lease extension were Adam to exercise his statutory right. Adam procured expert advice and secured satisfactory deal without resorting to tribunal and readily saleable.
Last month we were phoned by Mr and Mrs. W Patel , who took over the lease of a basement apartment in Leconfield in June 2010. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar flats in Leconfield with a long lease were in the region of £275,000. The mid-range ground rent payable was £55 collected monthly. The lease terminated in 2101. Having 76 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including professional charges.
Last Summer we were phoned by Ms Isabella Green , who acquired a purpose-built flat in Leconfield in May 2005. The dilemma was if we could approximate the price would be to extend the lease by an additional years. Similar properties in Leconfield with 100 year plus lease were valued around £176,200. The average amount of ground rent was £65 invoiced quarterly. The lease finished on 5 June 2081. Taking into account 56 years remaining we estimated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 plus costs.