The market value of a leasehold property in Elland is impacted by how many years the lease has remaining. If it is near to or less than 80 years you should expect problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be finalised ahead of the eighty year mark. Statute entitles Elland qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus an additional term of ninety years. The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Elland with over one hundred years outstanding on the lease are sometimes regarded as a ‘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 buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Using our service will provide you better control over the value of your Elland leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Jonathan, came perilously close to the eighty-year threshold with the lease on his studio apartment in Elland. In buying his home two decades ago, the unexpired term was of minimal bearing. Fortunately, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Jonathan arranged for a lease extension just under the wire last April. Jonathan and the freeholder in the end agreed on a premium of £6,000 . If the lease had slipped to less than 80 years, the amount would have escalated by a minimum £875.
Ms M Wood purchased a garden apartment in Elland in November 1996. The dilemma was if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Comparable residencies in Elland with 100 year plus lease were valued about £210,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease expired in 2106. Considering the 80 years unexpired we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of costs.
Mr and Mrs. C Scott moved into a studio flat in Elland in September 1995. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparative homes in Elland with a long lease were valued around £280,000. The average amount of ground rent was £45 collected yearly. The lease finished in 2095. Having 69 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including costs.