Flamborough leases on domestic deteriorating in value. Where your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. If lease term falls under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Flamborough will usually be legally entitled to a lease extension; however It would be wise to check with a lawyer to check if you qualify. In some cases you may not qualify. There are also strict deadlines and formalities to comply with once the process is triggered so it’s best to be guided by a conveyancer during the process.
Leasehold properties in Flamborough with over one hundred 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 property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with undertake Flamborough 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 conveyancing solicitor we work with provide it.
During the course of the last few months Austin, came dangerously near to the 80-year threshold with the lease on his leasehold flat in Flamborough. Having bought his property 19 years ago, the lease term was of no bearing. Luckily, he realised he would soon be paying an escalated premium for a lease extension. Austin arranged for a lease extension just under the wire last May. Austin and the landlord who owned the flat above subsequently settled on a premium of £5,000 . If the lease had gone lower than eighty years, the amount would have escalated by at least £1,150.
In 2010 we were called by Mr and Mrs. O García who, having took over the lease of a studio flat in Flamborough in September 2003. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Comparative residencies in Flamborough with a long lease were valued about £205,000. The mid-range amount of ground rent was £50 billed quarterly. The lease terminated on 16 September 2104. Taking into account 79 years remaining we estimated the compensation to the landlord for the lease extension to be between £7,600 and £8,800 plus legals.
Ms Alisha Scott acquired a garden flat in Flamborough in July 1996. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparative homes in Flamborough with 100 year plus lease were in the region of £270,000. The mid-range amount of ground rent was £65 invoiced monthly. The lease elapsed on 10 January 2093. Considering the 68 years left we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 plus fees.