On the balance of probabilities where you own a flat in Guiseley you actually own a long leasehold interest over your property
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers 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.
Half a year ago Eli, started to get near to the eighty-year mark with the lease on his studio flat in Guiseley. Having purchased his flat twenty years ago, the unexpired term was of little relevance. Luckily, he realised he needed to take steps soon on Extending the lease. Eli was able to extend his lease just ahead of time in January. Eli and the freeholder in the end settled on a premium of £5,000 . If the lease had slid lower than 80 years, the premium would have escalated by a minimum £1,125.
In 2011 we were e-mailed by Dr L Lefebvre who, having completed a first floor flat in Guiseley in August 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparative premises in Guiseley with a long lease were worth £206,200. The average amount of ground rent was £55 invoiced monthly. The lease came to a finish on 23 March 2081. Given that there were 56 years remaining we calculated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including fees.
Dr Jonathan Thomas owned a one bedroom flat in Guiseley in May 2007. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by a further 90 years. Comparative flats in Guiseley with 100 year plus lease were in the region of £300,000. The average ground rent payable was £50 billed quarterly. The lease termination date was in 2101. Considering the 76 years left we calculated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 plus professional charges.