When it comes to long leasehold property in Birch and Middleton, you effectively rent it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are less than eighty years remaining. Leasehold owners in Birch and Middleton with a lease nearing 81 years remaining should seriously think of extending it as soon as possible. When the lease term has under 80 years outstanding, under the current Act the landlord is entitled to calculate and levy a larger premium, assessed on a technical multiplication, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with more than 100 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 remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 Birch and Middleton,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Birch and Middleton valuers.
Trailing lengthy correspondence with the landlord of her garden apartment in Birch and Middleton, Aimee initiated the lease extension process just as the lease was nearing the critical 80-year deadline. The transaction was finalised in August 2012. The freeholder’s fees were negotiated to a tad over 650 GBP.
In 2012 we were e-mailed by Mrs O Johnson who, having was assigned a lease of a purpose-built flat in Birch and Middleton in February 2008. The question was if we could estimate the premium would likely be for a ninety year lease extension. Comparable residencies in Birch and Middleton with a long lease were valued around £225,800. The average amount of ground rent was £60 billed every twelve months. The lease ran out on 7 April 2086. Having 60 years unexpired we approximated the premium to the landlord to extend the lease to be within £23,800 and £27,400 exclusive of costs.
Dr Owen Michel was assigned a lease of a studio flat in Birch and Middleton in July 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by an additional years. Comparable homes in Birch and Middleton with 100 year plus lease were worth £210,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease terminated in 2106. Having 80 years remaining we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including costs.