The closer a domestic lease in Headingley gets to zero years unexpired, the more it reduces the value of the property. If the residual term has, in excess of 100 years to run then this decrease may be of little impact however there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should consider extending without delay. Many flat owners in Headingley will meet the qualifying criteria; nevertheless a conveyancer should be able to confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Headingley with in excess of 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Headingley,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 in-depth market knowledge and the close ties they enjoy with Headingley valuers.
Luca owned a 2 bedroom apartment in Headingley being sold with a lease of fraction over 72 years unexpired. Luca informally spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Luca to exercise his statutory right. Luca procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and sell the flat.
Last Autumn we were phoned by Dr Jade Díaz , who took over the lease of a one bedroom flat in Headingley in September 1998. The dilemma was if we could estimate the price could be to extend the lease by ninety years. Identical residencies in Headingley with an extended lease were in the region of £179,200. The average ground rent payable was £55 invoiced every twelve months. The lease expiry date was in 2076. Having 51 years outstanding we approximated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including costs.
In 2011 we were phoned by Mr D Laurent who, having acquired a purpose-built flat in Headingley in April 2012. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Similar properties in Headingley with an extended lease were in the region of £285,000. The mid-range ground rent payable was £45 billed every twelve months. The lease came to a finish in 2097. Given that there were 72 years outstanding we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including costs.