When it comes to domestic leasehold premises in Adwick le Street, you are actually buying a right to reside in a property for a prescribed time frame. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater particularly when there are less than 80 years left. Residents in Adwick le Street with a lease drawing near to 81 years unexpired should seriously think of extending it as soon as possible. When the lease term has under 80 years outstanding, under the current Act the landlord is entitled to calculate and charge a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Lease extensions in Adwick le Street can be a difficult process. We recommend you secure professional help from a lawyer and surveyor with experience in lease extensions.
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 a wealth of experience dealing with Adwick le Street lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
16 months ago Noah, started to get near to the 80-year threshold with the lease on his one bedroom apartment in Adwick le Street. In buying his property 18 years previously, the unexpired term was of little concern. Fortunately, he recognised he needed to take action soon on a lease extension. Noah was able to extend his lease just under the wire in July. Noah and the freeholder via the managing agents ultimately agreed on an amount of £6,000 . If the lease had fallen below eighty years, the sum would have increased by at least £1,125.
Mr and Mrs. R Bertrand acquired a ground floor flat in Adwick le Street in June 2002. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Comparable residencies in Adwick le Street with 100 year plus lease were worth £300,000. The average amount of ground rent was £50 invoiced per annum. The lease ran out in 2101. Taking into account 76 years left we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus legals.
Last Christmas we were e-mailed by Mr and Mrs. N Flores , who owned a garden apartment in Adwick le Street in June 1999. The dilemma was if we could approximate the premium could be to extend the lease by ninety years. Comparable residencies in Adwick le Street with 100 year plus lease were in the region of £257,800. The mid-range ground rent payable was £65 invoiced per annum. The lease came to a finish in 2090. Taking into account 65 years outstanding we estimated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 not including expenses.