Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Headingley. Clearly, the period of lease left reduces over time. This may slip by relatively unnoticed when the flat or house needs to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Qualifying long lease owners in Headingley have the legal entitlement to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. You should give due deliberation before putting off your Headingley lease extension. Putting off the cost now likely increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence 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. |
| 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. |
| 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 also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Headingley,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Headingley valuers.
In recent months Jackson, started to get near to the eighty-year threshold with the lease on his basement apartment in Headingley. In buying his home 18 years ago, the unexpired term was of minimal concern. Luckily, he became aware that he needed to take action soon on Extending the lease. Jackson was able to extend his lease just under the wire in August. Jackson and the freeholder via the management company eventually settled on an amount of £6,000 . If the lease had dropped to less than eighty years, the price would have escalated by a minimum £1,050.
In 2014 we were approached by Dr A Stewart who, having acquired a purpose-built apartment in Headingley in August 2009. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Similar properties in Headingley with a long lease were in the region of £208,600. The average ground rent payable was £60 invoiced annually. The lease concluded in 2082. Taking into account 57 years left we calculated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 exclusive of legals.
Last Autumn we were contacted by Mr Kyle Clark , who moved into a first floor apartment in Headingley in July 2005. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Comparable properties in Headingley with a long lease were in the region of £200,000. The average ground rent payable was £50 invoiced per annum. The lease ran out in 2102. Given that there were 77 years remaining we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including fees.