Anlaby leases on residential properties are gradually losing value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you begin incurring an additional element called marriage value. Flat owners in Anlaby will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In certain circumstances you may not be entitled. There are prescribed deadlines and procedures to follow once the process has started so it’s best to be guided by a lawyer during the process.
Leasehold residencies in Anlaby with in excess of 100 years left 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 premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The lawyers that we work with handle 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.
Subsequent to lengthy negotiations with the landlord of her two bedroom flat in Anlaby, Katie initiated the lease extension process just as her lease was coming close to the crucial eighty-year mark. The legal work was finalised in June 2011. The freeholder’s charges were kept to an absolute minimum.
Last Spring we were contacted by Mr and Mrs. V Torres , who owned a basement flat in Anlaby in May 2009. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Identical premises in Anlaby with 100 year plus lease were worth £285,000. The mid-range ground rent payable was £45 invoiced monthly. The lease end date was in 2097. Taking into account 72 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus costs.
Last Autumn we were called by Mrs S Parker , who acquired a purpose-built apartment in Anlaby in October 1998. We are asked if we could estimate the premium would be to extend the lease by a further 90 years. Comparative homes in Anlaby with a long lease were valued around £233,200. The mid-range amount of ground rent was £60 collected annually. The lease terminated in 2086. Given that there were 61 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £22,800 and £26,400 not including legals.