Unfortunately that a Elland residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Elland property prices.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher amount will be payable. The majority of leasehold owners in Elland will be able to extend under the legislation; however a lawyer should be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer for the duration of the process.
Leasehold properties in Elland with in excess of one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Engaging our service will provide you enhanced control over the value of your Elland leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Blake was the the leasehold owner of a high value flat in Elland on the market with a lease of a little over 72 years outstanding. Blake informally spoke with his landlord a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 yearly. Ordinarily, ground rent would not be due on a lease extension were Blake to exercise his statutory right. Blake obtained expert advice and was able to make an informed judgement and handle with the matter and sell the flat.
Mr and Mrs. K Young completed a one bedroom flat in Elland in November 2001. The question was if we could estimate the price would be for a ninety year extension to my lease. Similar residencies in Elland with an extended lease were in the region of £205,000. The mid-range ground rent payable was £50 invoiced yearly. The lease ended in 2104. Given that there were 78 years unexpired we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 not including costs.
In 2010 we were contacted by Mr and Mrs. S Cook who, having was assigned a lease of a garden flat in Elland in April 2000. We are asked if we could estimate the premium would likely be to extend the lease by 90 years. Similar premises in Elland with a long lease were in the region of £267,600. The mid-range amount of ground rent was £65 invoiced monthly. The lease ran out on 3 November 2093. Considering the 67 years as a residual term we approximated the premium to the landlord to extend the lease to be between £14,300 and £16,400 exclusive of costs.