There is no doubt about it a leasehold property in Elland is a wasting asset as a result of the diminishing lease term. Where the residual term has, more than 99 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. Most flat owners in Elland will qualify for this right; nevertheless a conveyancer can confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Leeds Building Society | |
| Skipton Building Society | |
| TSB | |
| Royal Bank of Scotland |
The conveyancing solicitors that we work with undertake 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.
During the course of the last few months Jackson, started to get near to the 80-year threshold with the lease on his basement flat in Elland. In buying his home two decades ago, the lease term was of no significance. As luck would have it, he recognised he needed to take action soon on Extending the lease. Jackson extended the lease just under the wire in March. Jackson and the landlord who owned the flat above in the end agreed on sum of £6,000 . If the lease had fallen to less than 80 years, the amount would have increased by at least £875.
In 2013 we were phoned by Mr and Mrs. J Lee who, having was assigned a lease of a studio flat in Elland in January 1999. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Comparable homes in Elland with an extended lease were valued about £275,000. The average amount of ground rent was £65 invoiced yearly. The lease ran out in 2094. Taking into account 68 years outstanding we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus legals.
Last Winter we were e-mailed by Ms Alicia Flores , who moved into a ground floor flat in Elland in November 1997. The dilemma was if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparative residencies in Elland with 100 year plus lease were worth £208,600. The average amount of ground rent was £60 collected annually. The lease finished on 19 January 2083. Given that there were 57 years left we calculated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of costs.