When it comes to residential leasehold property in Anlaby, you effectively rent it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly once there are less than eighty years left. Residents in Anlaby with a lease drawing near to 81 years left should seriously consider extending it without delay. When the lease term has under 80 years outstanding, under the relevant legislation the freeholder is entitled to calculate and levy a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be worth the same as 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The conveyancing solicitors that we work with procure Anlaby 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 conveyancing solicitor we work with provide it.
Last Christmas Riley, started to get near to the 80-year mark with the lease on his studio flat in Anlaby. Having purchased his flat 19 years previously, the lease term was of no bearing. As luck would have it, it dawned on him that he needed to take action soon on Extending the lease. Riley extended the lease just ahead of time last July. Riley and the landlord who owned the flat above in the end agreed on an amount of £5,500 . If he not met the deadline, the figure would have escalated by a minimum £1,100.
In 2010 we were phoned by Mr F Cook who, having bought a first floor apartment in Anlaby in October 2003. We are asked if we could estimate the price would be to extend the lease by ninety years. Comparative premises in Anlaby with an extended lease were in the region of £210,000. The mid-range amount of ground rent was £50 collected per annum. The lease terminated in 2105. Having 80 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus fees.
Dr H Martin was assigned a lease of a studio flat in Anlaby in October 2009. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable residencies in Anlaby with a long lease were worth £275,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease ran out in 2094. Given that there were 69 years outstanding we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 not including legals.