With a residential leasehold premises in Boroughbridge, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than eighty years remaining. Anyone in Boroughbridge with a lease nearing 81 years left should seriously think of extending it as soon as possible. Once a lease has under eighty years remaining, under the current statute the landlord can calculate and charge a greater premium, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold residencies in Boroughbridge with over one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | 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 |
Retaining our service will provide you better control over the value of your Boroughbridge leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Archie, started to get close to the 80-year mark with the lease on his garden flat in Boroughbridge. In buying his home 19 years ago, the length of the lease was of minimal relevance. As luck would have it, he recognised he needed to take action soon on a lease extension. Archie arranged for a lease extension just ahead of time in August. Archie and the freeholder via the management company eventually settled on the final figure of £6,000 . If he had missed the deadline, the sum would have increased by a minimum £1,025.
Last Christmas we were phoned by Dr C Carter , who was assigned a lease of a recently refurbished apartment in Boroughbridge in February 2012. The question was if we could approximate the price could be to extend the lease by an additional years. Identical homes in Boroughbridge with a long lease were valued about £295,000. The average amount of ground rent was £50 billed annually. The lease ran out in 2101. Considering the 75 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of costs.
In 2010 we were approached by Mr and Mrs. G Wilson who, having acquired a garden apartment in Boroughbridge in August 2003. The question was if we could estimate the premium would be for a ninety year lease extension. Identical flats in Boroughbridge with 100 year plus lease were worth £250,400. The average amount of ground rent was £65 billed per annum. The lease finished in 2090. Having 64 years unexpired we estimated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 not including fees.