When it comes to residential leasehold premises in Boroughbridge, you are actually buying an entitlement to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially once there are fewer than 80 years left. Leasehold owners in Boroughbridge with a lease approaching 81 years left should seriously consider extending it without delay. When a lease has less than 80 years remaining, under the current statute the freeholder can calculate and charge a larger premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Boroughbridge with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
The conveyancing solicitors that we work with procure Boroughbridge lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
George was the the leasehold owner of a conversion flat in Boroughbridge being marketed with a lease of a few days over 59 years left. George on an informal basis contacted his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were George to exercise his statutory right. George obtained expert legal guidance and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
In 2014 we were e-mailed by Mr Max James who, having bought a one bedroom flat in Boroughbridge in May 2011. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Similar properties in Boroughbridge with an extended lease were valued around £201,200. The average ground rent payable was £55 invoiced annually. The lease lapsed on 17 July 2082. Having 56 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 not including expenses.
In 2009 we were approached by Dr B Lambert who, having took over the lease of a garden apartment in Boroughbridge in February 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by a further 90 years. Comparative residencies in Boroughbridge with a long lease were worth £300,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease expired in 2102. Considering the 76 years outstanding we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of professional charges.