It’s a harsh certainty that a Headingley residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Headingley property prices.Where your lease has approximately ninety years left, you should start considering 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 falls under 80 years - otherwise a higher premium will be payable. The majority of leasehold owners in Headingley will be able to extend under the legislation; however a lawyer will be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Using our service will provide you better control over the value of your Headingley leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy correspondence with the freeholder of her leasehold apartment in Headingley, Katie started the lease extension process just as her lease was approaching the critical eighty-year mark. The lease extension completed in March 2010. The landlord’s charges were kept to an absolute minimum.
Mr Harrison Thompson moved into a basement apartment in Headingley in October 2000. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable residencies in Headingley with a long lease were worth £300,000. The mid-range ground rent payable was £50 billed monthly. The lease came to a finish in 2101. Given that there were 76 years left we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 not including fees.
Dr Chelsea Collins bought a studio apartment in Headingley in July 2008. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Similar homes in Headingley with an extended lease were worth £252,800. The average amount of ground rent was £65 invoiced annually. The lease ran out in 2090. Given that there were 65 years remaining we calculated the premium to the landlord to extend the lease to be between £17,100 and £19,800 exclusive of costs.