Garforth leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. If lease term dips under 80 years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Garforth will usually be legally entitled to a lease extension; however a solicitor should be able check your eligibility. In certain situations you may not qualify. There are prescribed deadlines and formalities to follow once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Garforth can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Garforth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Tommy owned a studio flat in Garforth being sold with a lease of fraction over 59 years left. Tommy on an informal basis spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Tommy to invoke his statutory right. Tommy obtained expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Last Autumn we were approach by Ms Georgia Thomas , who purchased a first floor apartment in Garforth in June 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Identical flats in Garforth with a long lease were in the region of £225,800. The average amount of ground rent was £60 billed per annum. The lease lapsed on 3 March 2086. Considering the 60 years left we approximated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 plus expenses.
In 2011 we were e-mailed by Dr Milo Ward who, having bought a ground floor flat in Garforth in January 1997. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative premises in Garforth with an extended lease were in the region of £210,000. The mid-range amount of ground rent was £50 billed quarterly. The lease expired in 2106. Taking into account 80 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of legals.