Elland leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Elland residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Elland you must see if your lease has between 70 and ninety years remaining. There are good reasons why a Elland flat owner with a lease having around 80 years remaining should take action to ensure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
The lawyers that we work with procure Elland 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 conveyancer we work with provide it.
After unsuccessful discussions with the freeholder of her studio flat in Elland, Elizabeth commenced the lease extension process just as the lease was coming close to the all-important eighty-year deadline. The transaction was concluded in November 2013. The landlord’s charges were negotiated to under 650 GBP.
Mrs Lily Baker owned a purpose-built flat in Elland in January 2003. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Similar premises in Elland with 100 year plus lease were valued about £174,200. The mid-range ground rent payable was £55 invoiced per annum. The lease elapsed in 2077. Given that there were 51 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 plus legals.
In 2014 we were approached by Dr H Alexander who, having acquired a basement apartment in Elland in September 2005. The dilemma was if we could estimate the price would be for a ninety year lease extension. Similar residencies in Elland with an extended lease were in the region of £285,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease finished in 2097. Considering the 71 years left we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including legals.