With a residential leasehold premises in Garforth, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably once there are fewer than eighty years remaining. Leasehold owners in Garforth with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. When the lease term has under eighty years outstanding, under the relevant statute the landlord is entitled to calculate and charge a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers 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.
During the course of the last few months Daniel, came perilously close to the 80-year threshold with the lease on his ground floor flat in Garforth. In buying his flat two decades ago, the length of the lease was of little importance. Luckily, he noticed he needed to take action soon on a lease extension. Daniel was able to extend his lease just ahead of time in June. Daniel and the freeholder subsequently settled on sum of £5,000 . If he failed to meet the deadline, the sum would have increased by a minimum £900.
Ms Amy Collins acquired a garden flat in Garforth in November 2002. 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. Similar residencies in Garforth with an extended lease were in the region of £275,000. The mid-range ground rent payable was £45 collected monthly. The lease came to a finish in 2095. Taking into account 69 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.
In 2011 we were phoned by Mr and Mrs. G Simon who, having owned a ground floor flat in Garforth in May 1996. The question was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative flats in Garforth with 100 year plus lease were worth £216,000. The average ground rent payable was £60 collected quarterly. The lease came to a finish in 2084. Taking into account 58 years remaining we estimated the premium to the landlord for the lease extension to be between £28,500 and £33,000 plus legals.