The value of Garforth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate materialy once the remaining term is below than 80 years
Leasehold premises in Garforth with in excess of 100 years outstanding 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 circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure Garforth 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.
Last October Cameron, started to get near to the 80-year threshold with the lease on his basement flat in Garforth. Having purchased his property twenty years previously, the unexpired term was of little interest. Fortunately, it dawned on him that he would soon be paying an inflated amount for Extending the lease. Cameron arranged for a lease extension at the eleventh hour last July. Cameron and the landlord in the end agreed on an amount of £5,000 . If the lease had fallen to less than 80 years, the sum would have become more exhorbitant by a minimum £925.
Mr and Mrs. S Murphy completed a purpose-built flat in Garforth in May 1999. The question was if we could approximate the price would be to extend the lease by 90 years. Comparative flats in Garforth with a long lease were in the region of £166,800. The average amount of ground rent was £50 billed monthly. The lease ended on 13 February 2075. Having 50 years remaining we approximated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 exclusive of expenses.
Ms E Collins completed a ground floor apartment in Garforth in June 2010. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by a further 90 years. Identical flats in Garforth with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £45 billed every twelve months. The lease ended on 7 November 2095. Having 70 years left we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus expenses.