With a long leasehold premises in Fulford, you are actually buying an entitlement to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than eighty years left. Residents in Fulford with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. When the lease term has under eighty years outstanding, under the current statute the landlord can calculate and demand a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Fulford,the lease extension experts 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 Fulford valuers.
Last year Connor, came dangerously close to the 80-year mark with the lease on his two bedroom flat in Fulford. In buying his flat two decades ago, the unexpired term was of minimal importance. by good luck, he became aware that he needed to take action soon on Extending the lease. Connor arranged for a lease extension just in the nick of time in April. Connor and the freeholder subsequently settled on the final figure of £5,000 . If the lease had gone to less than eighty years, the amount would have escalated by at least £1,125.
In 2010 we were phoned by Dr Jordan Morel who, having took over the lease of a recently refurbished flat in Fulford in January 2005. The question was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical residencies in Fulford with 100 year plus lease were valued about £265,000. The average amount of ground rent was £50 billed quarterly. The lease expired in 2099. Given that there were 73 years unexpired we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.
Last Spring we were phoned by Dr R André , who owned a one bedroom flat in Fulford in February 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Comparable flats in Fulford with a long lease were in the region of £264,000. The average ground rent payable was £60 collected quarterly. The lease ran out on 21 July 2079. Considering the 53 years outstanding we approximated the compensation to the landlord to extend the lease to be within £37,100 and £42,800 not including professional charges.