Unfortunately that a Elland residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Elland property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term slips under 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Elland will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your lawyer throughout the formalities.
Leasehold properties in Elland with more than one hundred years remaining 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 situations there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service gives you enhanced control over the value of your Elland leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 William, started to get near to the eighty-year threshold with the lease on his garden apartment in Elland. In buying his flat 18 years previously, the lease term was of minimal relevance. Fortunately, he became aware that he needed to take steps soon on Extending the lease. William arranged for a lease extension at the eleventh hour in July. William and the landlord who owned the flat above subsequently agreed on an amount of £5,000 . If the lease had dipped below eighty years, the figure would have increased by at least £950.
Mrs J Rose completed a first floor flat in Elland in April 2000. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Comparable homes in Elland with an extended lease were in the region of £184,000. The average amount of ground rent was £55 invoiced yearly. The lease expired on 19 September 2077. Taking into account 53 years remaining we approximated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of fees.
Last Summer we were contacted by Dr A Bailey , who purchased a purpose-built apartment in Elland in April 1995. The question was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Similar premises in Elland with a long lease were in the region of £290,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease terminated in 2097. Considering the 73 years remaining we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus costs.