When it comes to residential leasehold premises in Anlaby, you are actually buying an entitlement to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than eighty years left. Residents in Anlaby with a lease nearing 81 years unexpired should seriously think of extending it sooner as opposed to later. When a lease has below eighty years left, under the current legislation the freeholder is entitled to calculate and charge a larger premium, assessed on a technical computation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Anlaby can be a difficult process. We recommend you get guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 Anlaby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Jackson was the the leasehold proprietor of a 2 bedroom apartment in Anlaby on the market with a lease of a few days over 72 years outstanding. Jackson on an informal basis spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Jackson to invoke his statutory right. Jackson procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
Dr Francesca Morgan bought a studio flat in Anlaby in October 2005. The dilemma was if we could shed any light on how much (roughly) price would be to extend the lease by 90 years. Similar flats in Anlaby with an extended lease were valued around £285,000. The mid-range ground rent payable was £45 billed monthly. The lease expired in 2095. Having 71 years unexpired we approximated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of legals.
Last April we were contacted by Dr Y Mason , who bought a studio flat in Anlaby in April 2007. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Identical properties in Anlaby with a long lease were valued about £225,800. The mid-range ground rent payable was £60 invoiced quarterly. The lease termination date was on 24 November 2084. Taking into account 60 years as a residual term we calculated the premium to the landlord to extend the lease to be between £23,800 and £27,400 not including fees.