The re-sale value of a leasehold property in Dewsbury depends on how long the lease has remaining. If it is near to or fewer than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended before purchasing. Ideally one should start the lease extension process when the lease still has 82 years unexpired so that all matters can be concluded well before the 80 year cut off point. Statute enables Dewsbury qualifying lessees to obtain a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Dewsbury with more than one hundred years left on the lease are often referred to as ‘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 upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
The conveyancing solicitors that we work with undertake Dewsbury 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 conveyancer we work with provide it.
Last Summer Archie, started to get near to the eighty-year mark with the lease on his purpose- built apartment in Dewsbury. In buying his flat twenty years ago, the lease term was of little bearing. by good luck, he became aware that he needed to take action soon on Extending the lease. Archie extended the lease just in the nick of time last June. Archie and the landlord who owned the flat above in the end settled on an amount of £5,500 . If the lease had fallen to less than eighty years, the premium would have escalated by at least £1,100.
Ms Elizabeth Gómez owned a basement apartment in Dewsbury in November 2003. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparative flats in Dewsbury with a long lease were in the region of £218,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease finished on 2 August 2089. Given that there were 63 years outstanding we estimated the premium to the landlord for the lease extension to be between £17,100 and £19,800 exclusive of expenses.
Last month we were e-mailed by Dr Anna Moreau , who took over the lease of a recently refurbished flat in Dewsbury in July 2000. The question was if we could shed any light on how much (roughly) premium could be to extend the lease by an additional years. Comparative residencies in Dewsbury with 100 year plus lease were in the region of £265,000. The mid-range ground rent payable was £50 billed every twelve months. The lease came to a finish on 1 January 2100. Considering the 74 years unexpired we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus legals.