Great Ayton leases on domestic deteriorating in value. if your lease has about ninety years remaining, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Great Ayton will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In certain situations you may not qualify. There are prescribed deadlines and procedures to follow once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Retaining our service gives you enhanced control over the value of your Great Ayton leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Leon owned a high value flat in Great Ayton being marketed with a lease of a little over fifty eight years outstanding. Leon on an informal basis approached his landlord a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Leon to invoke his statutory right. Leon procured expert advice and was able to make an informed judgement and deal with the matter and sell the property.
In 2011 we were contacted by Ms R Collins who, having took over the lease of a one bedroom flat in Great Ayton in May 1997. The question was if we could approximate the price would be to extend the lease by 90 years. Comparable premises in Great Ayton with a long lease were worth £183,600. The mid-range amount of ground rent was £65 collected every twelve months. The lease came to a finish on 16 January 2082. Considering the 57 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 plus legals.
In 2012 we were phoned by Mr and Mrs. E Norbert who, having owned a first floor apartment in Great Ayton in March 2001. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparable residencies in Great Ayton with a long lease were in the region of £250,000. The average ground rent payable was £50 invoiced yearly. The lease expired in 2093. Taking into account 68 years as a residual term we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.