Elland residential property owned on a long lease is a depreciating asset as the leaseholder merely owns the property for a set term.
Leasehold properties in Elland with more than 100 years remaining 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 home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Elland leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Finley was the the leasehold proprietor of a high value flat in Elland being marketed with a lease of a little over 59 years left. Finley on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Finley to exercise his statutory right. Finley procured expert advice and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Mr Reuben Wilson bought a first floor apartment in Elland in May 2000. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Comparable homes in Elland with 100 year plus lease were valued about £285,000. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease terminated on 16 March 2097. Having 71 years remaining we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including professional charges.
Ms Jade Howard owned a ground floor apartment in Elland in February 1996. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Comparable premises in Elland with 100 year plus lease were valued around £225,800. The average amount of ground rent was £60 invoiced annually. The lease expiry date was on 1 July 2086. Given that there were 60 years as a residual term we calculated the premium to the landlord for the lease extension to be between £24,700 and £28,600 not including expenses.