Unfortunately that a Guiseley residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Guiseley property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below eighty years - otherwise a higher amount will be due. The majority of leasehold owners in Guiseley will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your lawyer throughout the process.
It is generally accepted that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Coventry Building Society | 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. |
Irrespective of whether you are a tenant or a freeholder in Guiseley,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Guiseley valuers.
Nathan was the the leasehold proprietor of a conversion apartment in Guiseley on the market with a lease of a little over 72 years unexpired. Nathan informally contacted his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Nathan to invoke his statutory right. Nathan procured expert advice and secured satisfactory resolution without resorting to tribunal and ending up with a market value flat.
Dr Teddy Harris purchased a purpose-built apartment in Guiseley in March 2003. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative properties in Guiseley with 100 year plus lease were worth £243,000. The average amount of ground rent was £65 collected monthly. The lease concluded on 24 July 2088. Given that there were 63 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 not including expenses.
Last Spring we were e-mailed by Dr I Harris , who was assigned a lease of a one bedroom apartment in Guiseley in July 2011. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparative properties in Guiseley with an extended lease were valued around £181,600. The average amount of ground rent was £55 billed monthly. The lease ran out on 14 April 2077. Considering the 52 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 exclusive of fees.