It’s a harsh certainty that a Market Weighton residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Market Weighton property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher amount will be payable. Most leasehold owners in Market Weighton will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the process.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth roughly the same 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 |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Coventry Building Society | 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 |
The lawyers that we work with procure Market Weighton 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 lawyer we work with provide it.
After unsuccessful correspondence with the landlord of her two bedroom flat in Market Weighton, Charlotte commenced the lease extension process as the 80 year threshold was fast approaching. The lease extension was concluded in May 2010. The freeholder’s costs were negotiated to approximately 650 GBP.
Mr V Garcia purchased a purpose-built apartment in Market Weighton in June 1997. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Comparative flats in Market Weighton with 100 year plus lease were valued about £208,200. The mid-range ground rent payable was £65 collected every twelve months. The lease finished in 2086. Having 61 years outstanding we approximated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 plus fees.
Last year we were e-mailed by Mr and Mrs. M Davis , who completed a basement flat in Market Weighton in August 2003. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Comparative homes in Market Weighton with a long lease were worth £260,000. The average amount of ground rent was £50 invoiced per annum. The lease ended in 2097. Considering the 72 years left we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.