The market value of Great Ayton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate materialy once the unexpired lease term is below than 80 years
Leasehold properties in Great Ayton with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in Great Ayton can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer with experience in this area.
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 in-depth market knowledge dealing with Great Ayton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy correspondence with the freeholder of her first floor flat in Great Ayton, Hannah commenced the lease extension process just as her lease was nearing the crucial eighty-year threshold. The legal work was concluded in May 2008. The freeholder’s fees were restricted to under 700 pounds.
In 2011 we were phoned by Mr and Mrs. F Gray who, having acquired a first floor flat in Great Ayton in October 2006. We are asked if we could shed any light on how much (roughly) premium would be for a ninety year extension to my lease. Comparative flats in Great Ayton with an extended lease were in the region of £261,600. The mid-range amount of ground rent was £60 collected every twelve months. The lease terminated in 2078. Given that there were 52 years unexpired we estimated the premium to the landlord for the lease extension to be between £39,000 and £45,000 not including expenses.
Last Spring we were contacted by Dr S Clark , who acquired a newly refurbished apartment in Great Ayton in July 2008. The question was if we could approximate the premium could be to extend the lease by ninety years. Comparable flats in Great Ayton with 100 year plus lease were in the region of £218,000. The average amount of ground rent was £45 invoiced every twelve months. The lease ended on 28 January 2089. Having 63 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £17,100 and £19,800 plus costs.