The market value of a leasehold property in Adwick le Street is impacted by how long the lease has remaining. If it is close to or fewer than eighty years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years to run so that formalities can be finalised prior to the eighty year mark. Statute enables Adwick le Street qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Adwick le Street with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Adwick le Street can be a difficult process. We recommend you get guidance from a conveyancing solicitor 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 procuring 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.
Last October John, came precariously close to the eighty-year threshold with the lease on his garden apartment in Adwick le Street. Having purchased his flat 19 years ago, the lease term was of little concern. Thankfully, he recognised he would imminently be paying way over the odds for Extending the lease. John was able to extend his lease at the eleventh hour last March. John and the freeholder ultimately settled on sum of £5,500 . If he had missed the deadline, the figure would have gone up by a minimum £1,150.
Ms G Torres purchased a purpose-built apartment in Adwick le Street in January 1995. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar premises in Adwick le Street with an extended lease were worth £171,800. The average amount of ground rent was £55 collected per annum. The lease elapsed on 3 March 2075. Given that there were 50 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 plus costs.
Mr and Mrs. Y Green completed a recently refurbished flat in Adwick le Street in February 2011. The dilemma was if we could shed any light on how much (approximately) price would likely be to prolong the lease by a further 90 years. Comparative premises in Adwick le Street with a long lease were worth £280,000. The mid-range ground rent payable was £45 collected annually. The lease elapsed on 14 November 2095. Taking into account 70 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including professional charges.