The closer a domestic lease in Garforth gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, beyond 125 years to run then this decrease may be fractional that being said there will become a point in time when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. The majority of flat owners in Garforth will qualify for this right; however a conveyancing solicitor can confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold premises in Garforth with more than 100 years left 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 circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Garforth,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Garforth valuers.
Hugo was the the leasehold owner of a 2 bedroom flat in Garforth on the market with a lease of just over 72 years left. Hugo on an informal basis approached his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Hugo to exercise his statutory right. Hugo procured expert advice and secured an acceptable resolution informally and ending up with a market value flat.
Mr and Mrs. U González bought a garden apartment in Garforth in August 2010. We are asked if we could estimate the premium would be to extend the lease by a further 90 years. Identical flats in Garforth with an extended lease were in the region of £295,000. The average amount of ground rent was £45 collected quarterly. The lease expired in 2099. Given that there were 74 years outstanding we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including expenses.
Last Summer we were contacted by Dr C Martin , who acquired a first floor apartment in Garforth in June 2006. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Similar flats in Garforth with 100 year plus lease were valued about £243,000. The average ground rent payable was £65 billed per annum. The lease termination date was in 2088. Given that there were 63 years outstanding we estimated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 exclusive of professional charges.