Unfortunately that a Adwick le Street residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Adwick le Street property prices.Where your lease has approximately ninety years left, 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 dips under eighty years - otherwise a higher premium will be payable. The majority of leasehold owners in Adwick le Street will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Adwick le Street,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Adwick le Street valuers.
Following protracted correspondence with the freeholder of her two bedroom flat in Adwick le Street, Katie started the lease extension process just as the lease was approaching the crucial 80-year threshold. The transaction was concluded in June 2014. The landlord’s charges were negotiated to less than 650 pounds.
Mrs U Lewis purchased a first floor apartment in Adwick le Street in July 2000. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative premises in Adwick le Street with a long lease were in the region of £240,600. The mid-range ground rent payable was £60 billed yearly. The lease finished on 9 October 2088. Having 62 years remaining we estimated the premium to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of legals.
Last Summer we were phoned by Mr Max David , who took over the lease of a one bedroom apartment in Adwick le Street in March 2009. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Comparative homes in Adwick le Street with an extended lease were worth £174,200. The average amount of ground rent was £55 collected quarterly. The lease expired on 9 September 2077. Having 51 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 plus professional charges.