There is no doubt about it a leasehold property in Borrowash is a wasting asset as a result of the diminishing lease term. If the lease has, beyond 125 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary rational as to why you should extend the lease without delay. Most flat owners in Borrowash will meet the qualifying criteria; that being said a conveyancer should be able to confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Borrowash with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a landlord in Borrowash,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Borrowash valuers.
Jasper was the the leasehold owner of a studio flat in Borrowash on the market with a lease of a little over 61 years left. Jasper informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £50 per annum. No ground rent would be payable on a lease extension were Jasper to exercise his statutory right. Jasper procured expert legal guidance and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
In 2009 we were e-mailed by Ms N Taylor who, having acquired a garden apartment in Borrowash in August 1998. The dilemma was if we could approximate the premium would likely be to prolong the lease by 90 years. Identical flats in Borrowash with a long lease were in the region of £245,000. The average ground rent payable was £45 invoiced yearly. The lease end date was in 2093. Having 68 years left we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
In 2012 we were contacted by Mr and Mrs. R Parker who, having was assigned a lease of a garden apartment in Borrowash in June 1998. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by an additional years. Comparative flats in Borrowash with a long lease were worth £280,000. The average ground rent payable was £55 billed quarterly. The lease expired on 8 March 2103. Considering the 78 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus legals.