For those whose Anlaby home is held on a long lease, the message is clear – if you do nothing, the property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your Anlaby leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful correspondence with the landlord of her studio apartment in Anlaby, Kate started the lease extension process just as the lease was nearing the critical eighty-year threshold. The lease extension completed in July 2009. The freeholder’s charges were negotiated to about 500 GBP.
Ms O Bailey bought a one bedroom flat in Anlaby in March 2004. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Comparative properties in Anlaby with a long lease were in the region of £171,800. The mid-range amount of ground rent was £55 invoiced yearly. The lease termination date was on 23 November 2076. Taking into account 50 years outstanding we calculated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 not including legals.
Last Christmas we were phoned by Mr and Mrs. U Rivera , who owned a one bedroom apartment in Anlaby in November 1998. The dilemma was if we could estimate the premium would be for a ninety year extension to my lease. Comparative homes in Anlaby with a long lease were in the region of £280,000. The average ground rent payable was £45 collected every twelve months. The lease end date was in 2096. Considering the 70 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of costs.