There is no doubt about it a leasehold flat or house in Elland is a wasting asset as a result of the shortening lease. Where the residual term has, over 99 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should consider extending sooner than later. Many flat owners in Elland will meet the qualifying criteria; nevertheless a conveyancing solicitor can confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 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 |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 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. |
| 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. |
Retaining our service will provide you better control over the value of your Elland leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Luke, came dangerously close to the eighty-year mark with the lease on his ground floor apartment in Elland. In buying his flat two decades ago, the lease term was of minimal interest. Luckily, he recognised he needed to take action soon on Extending the lease. Luke arranged for a lease extension at the eleventh hour in August. Luke and the landlord subsequently agreed on sum of £5,500 . If he not met the deadline, the sum would have gone up by a minimum £875.
Last Winter we were contacted by Mr and Mrs. P Bell , who moved into a one bedroom apartment in Elland in August 2007. The dilemma was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Identical homes in Elland with a long lease were valued around £267,600. The mid-range amount of ground rent was £65 collected annually. The lease expired on 23 January 2093. Taking into account 67 years as a residual term we approximated the premium to the landlord for the lease extension to be between £14,300 and £16,400 exclusive of professional charges.
Dr Jude Díaz completed a ground floor apartment in Elland in April 2009. The question was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Comparable residencies in Elland with 100 year plus lease were valued around £206,200. The average ground rent payable was £60 collected monthly. The lease ended in 2082. Having 56 years remaining we approximated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 not including costs.