With a residential leasehold premises in Elland, you are actually purchasing a right to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially once there are fewer than eighty years left. Anyone in Elland with a lease approaching 81 years unexpired should seriously consider extending it sooner as opposed to later. Once the lease term has under eighty years remaining, under the current Act the freeholder can calculate and charge a greater premium, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold properties in Elland with more than 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 home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify 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; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Elland,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Elland valuers.
Two years ago Rory, started to get near to the 80-year mark with the lease on his basement apartment in Elland. In buying his flat two decades ago, the lease term was of little relevance. Luckily, he recognised he would soon be paying an inflated amount for Extending the lease. Rory was able to extend his lease just under the wire in January. Rory and the freeholder eventually agreed on sum of £5,000 . If the lease had gone to less than eighty years, the amount would have increased by a minimum £1,150.
In 2010 we were phoned by Mrs K James who, having owned a one bedroom flat in Elland in October 2006. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Identical premises in Elland with an extended lease were in the region of £210,000. The average amount of ground rent was £50 billed annually. The lease finished in 2105. Given that there were 80 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus costs.
Last Spring we were phoned by Mr Ali Norbert , who was assigned a lease of a purpose-built flat in Elland in July 2010. The question was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparative flats in Elland with a long lease were in the region of £275,000. The mid-range ground rent payable was £45 billed yearly. The lease finished in 2094. Taking into account 69 years remaining we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.