Unfortunately that a Balby residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Balby property prices.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than 80 years - otherwise a higher premium will be payable. The majority of leasehold owners in Balby will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer throughout the formalities.
It is generally accepted that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence 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. |
| 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. |
| Halifax | Minimum 70 years from the date 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. |
Lease extensions in Balby can be a difficult process. We recommend you obtain guidance from a conveyancer and surveyor with experience in lease extensions.
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 Balby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Riley, came critically near to the 80-year mark with the lease on his two bedroom flat in Balby. In buying his home twenty years previously, the length of the lease was of minimal concern. Thankfully, he noticed he would imminently be paying an inflated amount for a lease extension. Riley arranged for a lease extension just ahead of time last September. Riley and the landlord in the end agreed on sum of £5,000 . If the lease had fallen to less than 80 years, the premium would have escalated by a minimum £1,150.
Last Winter we were called by Mr and Mrs. N Laurent , who acquired a basement apartment in Balby in April 2000. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparative properties in Balby with an extended lease were worth £235,200. The mid-range ground rent payable was £45 billed every twelve months. The lease terminated on 6 May 2092. Taking into account 66 years left we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 plus professional charges.
Last Autumn we were phoned by Mrs W Simon , who bought a garden apartment in Balby in October 1998. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Similar homes in Balby with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £55 collected annually. The lease elapsed in 2103. Taking into account 77 years left we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 plus costs.