Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Guiseley. Inevitably, the term of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the residence needs to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in Guiseley have the legal entitlement to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Do give due consideration before delaying your Guiseley lease extension. Holding off the cost now likely increases the price you will ultimately incur for a lease extension
Leasehold premises in Guiseley with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with undertake Guiseley 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 lawyer we work with provide it.
Alex owned a 2 bedroom flat in Guiseley on the market with a lease of a little over fifty eight years unexpired. Alex informally contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Alex to invoke his statutory right. Alex procured expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last month we were called by Ms Laura Walker , who moved into a ground floor apartment in Guiseley in January 2006. The question was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparable properties in Guiseley with a long lease were in the region of £257,800. The average ground rent payable was £65 invoiced yearly. The lease concluded in 2091. Considering the 65 years left we calculated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 exclusive of fees.
Dr F Campbell owned a one bedroom flat in Guiseley in September 2006. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Similar properties in Guiseley with an extended lease were worth £191,400. The mid-range ground rent payable was £55 invoiced yearly. The lease elapsed on 17 April 2080. Given that there were 54 years as a residual term we calculated the premium to the landlord for the lease extension to be within £34,200 and £39,600 exclusive of fees.