Elland 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 your lease becomes more expensive. It is the case that most Elland tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where 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 eighty years, the cost of any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold premises in Elland with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
Lease extensions in Elland can be a difficult process. We recommend you secure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Elland lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Mason, started to get near to the 80-year threshold with the lease on his ground floor flat in Elland. Having bought his home two decades ago, the length of the lease was of little importance. Luckily, he became aware that he needed to take steps soon on Extending the lease. Mason arranged for a lease extension just under the wire in April. Mason and the landlord ultimately settled on the final figure of £5,500 . If he failed to meet the deadline, the figure would have become more costly by at least £875.
Last Winter we were e-mailed by Mr and Mrs. D Wilson , who was assigned a lease of a recently refurbished apartment in Elland in November 2001. We are asked if we could estimate the price could be to extend the lease by an additional years. Similar premises in Elland with an extended lease were valued about £191,400. The mid-range ground rent payable was £55 invoiced every twelve months. The lease concluded in 2079. Given that there were 54 years remaining we estimated the premium to the landlord to extend the lease to be between £34,200 and £39,600 exclusive of costs.
In 2012 we were approached by Mrs Amy Clarke who, having completed a purpose-built apartment in Elland in February 2004. The question was if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparative homes in Elland with an extended lease were worth £295,000. The average ground rent payable was £45 billed yearly. The lease concluded in 2099. Given that there were 74 years remaining we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of expenses.