Chances are that where you own a flat in Easingwold you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The lawyers that we work with handle Easingwold 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.
Subsequent to lengthy discussions with the freeholder of her first floor apartment in Easingwold, Zoe initiated the lease extension process as the 80 year threshold was rapidly approaching. The lease extension was concluded in November 2010. The landlord’s costs were restricted to a tad over 600 pounds.
Ms W Michel purchased a one bedroom apartment in Easingwold in April 1995. The question was if we could approximate the premium could be to prolong the lease by a further 90 years. Identical homes in Easingwold with 100 year plus lease were valued about £208,600. The average ground rent payable was £60 collected yearly. The lease elapsed on 8 February 2083. Taking into account 57 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 plus legals.
Last October we were contacted by Mr and Mrs. C Carter , who completed a garden flat in Easingwold in November 2001. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical premises in Easingwold with a long lease were worth £200,000. The mid-range ground rent payable was £50 collected quarterly. The lease ended in 2103. Given that there were 77 years left we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus professional charges.