Headingley leases on residential properties are gradually losing value. if your lease has about 90 years remaining, you should start thinking about a lease extension. If lease term is under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Headingley will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process has started so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Headingley with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| 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. |
Regardless of whether you are a tenant or a freeholder in Headingley,the lease extension experts that we work with will always be prepared 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.
Ibrahim was the the leasehold proprietor of a conversion flat in Headingley being marketed with a lease of fraction over 61 years outstanding. Ibrahim informally approached his freeholder a well known London-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ibrahim to exercise his statutory right. Ibrahim obtained expert advice and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Dr F Simon acquired a one bedroom flat in Headingley in January 1995. The question was if we could estimate the price would likely be for a ninety year lease extension. Similar flats in Headingley with 100 year plus lease were valued about £267,600. The mid-range ground rent payable was £65 invoiced quarterly. The lease expired in 2093. Having 67 years remaining we approximated the compensation to the landlord for the lease extension to be between £14,300 and £16,400 plus expenses.
Mr and Mrs. I Jackson completed a newly refurbished flat in Headingley in November 2011. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Comparative premises in Headingley with a long lease were valued around £201,200. The mid-range ground rent payable was £55 collected monthly. The lease expired in 2082. Taking into account 56 years unexpired we estimated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of costs.