When it comes to long leasehold premises in Elland, you are actually buying an entitlement to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly once there are fewer than eighty years left. Anyone in Elland with a lease approaching 81 years remaining should seriously consider extending it without delay. When a lease has below 80 years outstanding, under the relevant legislation the landlord is entitled to calculate and levy a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold properties in Elland with in excess of 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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 |
| 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. |
The conveyancers 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 conveyancing solicitor we work with provide it.
Jamie was the the leasehold proprietor of a conversion flat in Elland being sold with a lease of fraction over sixty years outstanding. Jamie informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. No ground rent would be payable on a lease extension were Jamie to exercise his statutory right. Jamie obtained expert advice and was able to make a more informed decision and deal with the matter and sell the flat.
Last February we were contacted by Ms G Robinson , who owned a garden apartment in Elland in November 2007. The question was if we could approximate the price would likely be for a ninety year lease extension. Comparative homes in Elland with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £45 invoiced quarterly. The lease elapsed in 2094. Taking into account 69 years outstanding we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus expenses.
In 2009 we were phoned by Mrs Bethany Miller who, having moved into a studio flat in Elland in February 2001. The dilemma was if we could approximate the price would be for a ninety year lease extension. Similar homes in Elland with 100 year plus lease were in the region of £216,000. The average amount of ground rent was £60 billed every twelve months. The lease lapsed in 2083. Given that there were 58 years outstanding we estimated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of expenses.