The re-sale value of a leasehold property in Elland is impacted by how many years the lease has left to run. If it is close to or fewer than 80 years you should foresee difficulties on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is ideal to start the lease extension process when a lease still has 82 years unexpired so that a lease extension can be addressed ahead of the eighty year threshold. Current legislation entitles Elland qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus an additional term of 90 years. The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Elland with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 obtain professional help from a lawyer and surveyor 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.
Tommy owned a studio apartment in Elland being sold with a lease of just over sixty years remaining. Tommy on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Tommy to invoke his statutory right. Tommy procured expert legal guidance and secured an acceptable deal informally and sell the flat.
Mr Arthur Laurent completed a one bedroom apartment in Elland in April 2012. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Identical residencies in Elland with 100 year plus lease were in the region of £300,000. The mid-range amount of ground rent was £50 billed per annum. The lease concluded in 2101. Taking into account 76 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.
Last year we were approach by Mrs Niamh Robinson , who owned a ground floor flat in Elland in April 2005. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparative homes in Elland with an extended lease were valued about £257,800. The mid-range amount of ground rent was £65 billed yearly. The lease elapsed in 2090. Taking into account 65 years left we calculated the premium to the landlord to extend the lease to be between £17,100 and £19,800 plus fees.