Owning a apartment usually means owning a lease of the property, which has a finite term of years. This lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Askam In Furness. Inevitably, the length of lease remaining reduces as time goes by. This is often overlooked and only raises itself as an issue when the property has to be sold or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Askam In Furness have the legal entitlement to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Please give due attention before putting off your Askam In Furness lease extension. Putting off that expense now only increases the price you will eventually have to pay to extend your lease
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Askam In Furness,the lease extension lawyers 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 Askam In Furness valuers.
Twenty four months ago Sebastian, came precariously close to the 80-year threshold with the lease on his leasehold apartment in Askam In Furness. In buying his property 18 years previously, the length of the lease was of no relevance. Thankfully, it dawned on him that he would soon be paying an escalated premium for a lease extension. Sebastian extended the lease just ahead of time last June. Sebastian and the freeholder via the managing agents eventually agreed on a premium of £6,000 . If the lease had dropped lower than eighty years, the amount would have become more exhorbitant by at least £925.
Dr Amy Bonnet completed a studio apartment in Askam In Furness in October 2004. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparable flats in Askam In Furness with an extended lease were worth £216,000. The mid-range ground rent payable was £60 billed per annum. The lease termination date was in 2083. Given that there were 58 years as a residual term we calculated the premium to the landlord for the lease extension to be within £28,500 and £33,000 plus costs.
Last Autumn we were e-mailed by Dr Victoria Richardson , who purchased a newly refurbished apartment in Askam In Furness in April 2002. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparative properties in Askam In Furness with a long lease were in the region of £200,000. The average amount of ground rent was £50 collected quarterly. The lease terminated in 2103. Given that there were 78 years as a residual term we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of legals.