With a domestic leasehold premises in Elland, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially when there are fewer than eighty years left. Anyone in Elland with a lease nearing 81 years left should seriously think of extending it without delay. When the lease term has under 80 years left, under the relevant legislation the landlord is entitled to calculate and demand a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Leeds Building Society | 85 years remaing from the start of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. For a Lifetime Mortgage, the term must be no less than 150 years minus the age of the Borrower. |
The lawyers that we work with handle Elland 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 conveyancer we work with provide it.
Tyler was the the leasehold proprietor of a conversion flat in Elland on the market with a lease of a few days over sixty years outstanding. Tyler informally approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 per annum. No ground rent would be due on a lease extension were Tyler to invoke his statutory right. Tyler procured expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
In 2010 we were e-mailed by Dr Mia Davis who, having purchased a one bedroom apartment in Elland in November 2009. The question was if we could estimate the price would be to prolong the lease by 90 years. Comparative residencies in Elland with an extended lease were worth £275,000. The mid-range ground rent payable was £45 invoiced yearly. The lease elapsed in 2090. Considering the 69 years outstanding we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus costs.
Dr A Peterson took over the lease of a purpose-built flat in Elland in May 2010. The dilemma was if we could estimate the premium could be to prolong the lease by an additional years. Comparable premises in Elland with 100 year plus lease were worth £216,000. The average ground rent payable was £60 billed quarterly. The lease ended on 15 July 2079. Considering the 58 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including expenses.