When it comes to domestic leasehold premises in Elland, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially once there are fewer than 80 years remaining. Leasehold owners in Elland with a lease nearing 81 years remaining should seriously think of extending it sooner as opposed to later. Once a lease has below eighty years left, under the relevant statute the freeholder is entitled to calculate and demand a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Halifax | 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. |
Lease extensions in Elland can be a difficult process. We recommend you secure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Elland lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Theo owned a 2 bedroom apartment in Elland being sold with a lease of a little over fifty eight years left. Theo informally spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Theo to exercise his statutory right. Theo obtained expert advice and secured an acceptable resolution without resorting to tribunal and ending up with a market value flat.
Dr Evan Robinson purchased a one bedroom apartment in Elland in June 1995. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by ninety years. Similar homes in Elland with a long lease were in the region of £189,000. The average ground rent payable was £55 billed per annum. The lease came to a finish in 2079. Taking into account 53 years left we approximated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 not including professional charges.
In 2009 we were contacted by Dr I Martin who, having owned a studio apartment in Elland in September 2000. We are asked if we could estimate the premium would be to extend the lease by a further 90 years. Comparative premises in Elland with a long lease were in the region of £290,000. The average ground rent payable was £45 invoiced per annum. The lease ended in 2099. Having 73 years outstanding we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.