There is no doubt about it a leasehold flat or house in Trimdon is a wasting asset as a result of the shortening lease. Where the lease has, in excess of one hundred years remaining then this decrease may be fractional however there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending sooner rather than later. The majority of flat owners in Trimdon will meet the qualifying criteria; that being said a conveyancer can confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Retaining our service gives you enhanced control over the value of your Trimdon leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last October Jack, started to get near to the 80-year mark with the lease on his studio flat in Trimdon. In buying his home two decades ago, the lease term was of no relevance. As luck would have it, it dawned on him that he needed to take steps soon on a lease extension. Jack extended the lease at the eleventh hour last January. Jack and the landlord who owned the flat above eventually settled on sum of £5,000 . If he not met the deadline, the amount would have gone up by a minimum £950.
Last Autumn we were called by Mr Harry Rodríguez , who took over the lease of a ground floor flat in Trimdon in August 2012. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Identical premises in Trimdon with an extended lease were in the region of £280,000. The mid-range ground rent payable was £55 billed annually. The lease lapsed on 28 January 2103. Having 78 years outstanding we calculated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 plus expenses.
Last Spring we were approach by Mrs C Michel , who acquired a studio flat in Trimdon in October 2008. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparative flats in Trimdon with a long lease were valued about £191,000. The average amount of ground rent was £65 invoiced quarterly. The lease ran out on 8 April 2083. Taking into account 58 years left we estimated the premium to the freeholder for the lease extension to be between £23,800 and £27,400 exclusive of costs.