Elland leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Elland enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Elland you should see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
Leasehold properties in Elland with in excess of one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Coventry Building Society | 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. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Elland,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Elland valuers.
Off the back of protracted negotiations with the landlord of her studio apartment in Elland, Sophie started the lease extension process as the eighty year threshold was quickly coming. The legal work was concluded in February 2009. The landlord’s charges were restricted to a tad over 650 GBP.
In 2009 we were phoned by Mrs Abbie James who, having took over the lease of a first floor apartment in Elland in March 2008. The dilemma was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Similar homes in Elland with an extended lease were in the region of £257,800. The mid-range ground rent payable was £65 collected per annum. The lease elapsed in 2090. Considering the 65 years remaining we calculated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 plus fees.
Mrs W Rogers was assigned a lease of a garden apartment in Elland in February 1996. The question was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable residencies in Elland with a long lease were worth £191,400. The mid-range ground rent payable was £55 billed per annum. The lease ran out on 25 August 2079. Taking into account 54 years as a residual term we estimated the premium to the landlord for the lease extension to be between £34,200 and £39,600 exclusive of costs.