East Riding Villages leases on residential properties are gradually losing 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 Riding Villages enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in East Riding Villages you really ought to investigate if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a landlord in East Riding Villages,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 experience and the close ties they enjoy with East Riding Villages valuers.
After lengthy discussions with the landlord of her one bedroom apartment in East Riding Villages, Molly initiated the lease extension process just as her lease was approaching the critical eighty-year deadline. The lease extension completed in September 2014. The landlord’s charges were restricted to slightly above 450 GBP.
Mr and Mrs. V Harris acquired a first floor flat in East Riding Villages in September 2000. The question was if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Comparative homes in East Riding Villages with a long lease were worth £216,000. The mid-range amount of ground rent was £60 invoiced per annum. The lease termination date was on 8 November 2083. Having 58 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 plus expenses.
In 2014 we were approached by Dr Jasmine Bertrand who, having moved into a one bedroom flat in East Riding Villages in May 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable premises in East Riding Villages with a long lease were in the region of £200,000. The average amount of ground rent was £50 invoiced annually. The lease concluded in 2103. Given that there were 78 years remaining we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including professional charges.