With a long leasehold property in Armthorpe, you are actually buying a right to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than 80 years remaining. Anyone in Armthorpe with a lease drawing near to 81 years unexpired should seriously consider extending it sooner rather than later. When the lease term has fewer than eighty years outstanding, under the relevant legislation the freeholder is entitled to calculate and demand a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Armthorpe,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Armthorpe valuers.
After lengthy correspondence with the freeholder of her first floor flat in Armthorpe, Jodie commenced the lease extension process just as her lease was approaching the critical eighty-year deadline. The lease extension was finalised in June 2012. The freeholder’s charges were restricted to less than 600 pounds.
In 2014 we were called by Dr T Kelly who, having bought a studio flat in Armthorpe in January 2008. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Similar premises in Armthorpe with 100 year plus lease were worth £183,600. The average amount of ground rent was £65 invoiced every twelve months. The lease concluded in 2082. Considering the 57 years left we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including professional charges.
Last Autumn we were approach by Dr Michael Walker , who bought a studio apartment in Armthorpe in October 2012. We are asked if we could approximate the premium would be for a 90 year lease extension. Comparative properties in Armthorpe with a long lease were worth £245,000. The average amount of ground rent was £50 billed per annum. The lease expired in 2093. Considering the 68 years unexpired we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.