Unfortunately that a Friday Hill residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Friday Hill property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than 80 years - otherwise a higher premium will be payable. Most leasehold owners in Friday Hill will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold premises in Friday Hill with over 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 buying the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
The conveyancing solicitors that we work with handle Friday Hill 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 lawyer we work with provide it.
In recent months Muhammad, came seriously near to the eighty-year mark with the lease on his first floor flat in Friday Hill. In buying his home two decades ago, the lease term was of no significance. Thankfully, he became aware that he would imminently be paying an inflated amount for a lease extension. Muhammad extended the lease just under the wire in September. Muhammad and the landlord subsequently settled on an amount of £5,000 . If the lease had slid below 80 years, the amount would have escalated by a minimum £925.
In 2013 we were called by Mr W Young who, having bought a ground floor apartment in Friday Hill in April 2005. The dilemma was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparative residencies in Friday Hill with a long lease were worth £254,200. The average amount of ground rent was £60 collected monthly. The lease ran out on 14 October 2077. Having 51 years outstanding we estimated the compensation to the landlord for the lease extension to be within £43,700 and £50,600 exclusive of legals.
Mr and Mrs. D Roux acquired a purpose-built apartment in Friday Hill in March 2006. The question was if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Similar residencies in Friday Hill with an extended lease were worth £210,600. The mid-range amount of ground rent was £45 billed yearly. The lease elapsed on 15 July 2088. Considering the 62 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 exclusive of costs.