East Leake leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. The majority of owners of residential leasehold property in East Leake enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in East Leake you should see if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you increased control over the value of your East Leake leasehold, as your property will be more valuable and saleable in terms 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.
Subsequent to lengthy negotiations with the landlord of her ground floor flat in East Leake, Madeleine initiated the lease extension process as the eighty year mark was fast nearing. The lease extension completed in July 2013. The freeholder’s charges were negotiated to about 650 GBP.
In 2011 we were approached by Dr W Bernard who, having acquired a one bedroom apartment in East Leake in April 1999. The dilemma was if we could approximate the price would likely be for a 90 year extension to my lease. Comparative premises in East Leake with an extended lease were valued about £233,200. The average amount of ground rent was £60 billed annually. The lease ended in 2087. Considering the 61 years left we approximated the premium to the freeholder for the lease extension to be between £22,800 and £26,400 exclusive of professional charges.
Ms S Walker purchased a recently refurbished flat in East Leake in November 2012. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparative properties in East Leake with a long lease were valued around £166,800. The average amount of ground rent was £50 collected every twelve months. The lease elapsed on 26 January 2076. Considering the 50 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £32,300 and £37,400 exclusive of costs.