With a domestic leasehold property in Leyland, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially when there are less than eighty years remaining. Residents in Leyland with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once the lease term has under eighty years outstanding, under the relevant Act the freeholder can calculate and levy a larger premium, based on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property 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 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; |
| 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. |
| 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 |
| 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. |
Lease extensions in Leyland can be a difficult process. We recommend you procure guidance from a conveyancer 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 procuring Leyland lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Connor, came perilously near to the eighty-year mark with the lease on his one bedroom apartment in Leyland. Having purchased his home 19 years ago, the length of the lease was of minimal significance. by good luck, he noticed he would imminently be paying an inflated amount for Extending the lease. Connor arranged for a lease extension at the eleventh hour last July. Connor and the freeholder via the managing agents eventually agreed on an amount of £6,000 . If the lease had gone to less than eighty years, the amount would have become more costly by at least £1,025.
Mr and Mrs. H Collins was assigned a lease of a basement flat in Leyland in April 1998. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparative premises in Leyland with 100 year plus lease were in the region of £260,200. The mid-range amount of ground rent was £65 collected annually. The lease came to a finish on 19 January 2090. Taking into account 66 years unexpired we estimated the compensation to the landlord for the lease extension to be within £16,200 and £18,600 plus legals.
In 2012 we were e-mailed by Dr Edward Bonnet who, having moved into a studio apartment in Leyland in July 1995. The dilemma was if we could approximate the premium would be to extend the lease by an additional years. Identical properties in Leyland with a long lease were valued about £198,800. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease ended on 16 July 2079. Given that there were 55 years unexpired we approximated the premium to the landlord to extend the lease to be between £33,300 and £38,400 exclusive of costs.