Unfortunately that a Headingley residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. 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 90 years left, you should start thinking about a lease extension. If lease term drops under eighty years, you will then be required to pay half 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 the property Most leasehold owners in Headingley will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold properties in Headingley with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Headingley can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Headingley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
14 months ago Aiden, came seriously close to the 80-year mark with the lease on his purpose- built apartment in Headingley. Having purchased his flat twenty years ago, the length of the lease was of minimal relevance. by good luck, he noticed he needed to take action soon on a lease extension. Aiden arranged for a lease extension at the eleventh hour last June. Aiden and the freeholder via the management company eventually settled on the final figure of £5,500 . If the lease had fallen lower than 80 years, the sum would have increased by a minimum £850.
In 2011 we were e-mailed by Mr and Mrs. B Cooper who, having bought a purpose-built apartment in Headingley in February 2000. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Identical properties in Headingley with an extended lease were valued around £166,800. The mid-range amount of ground rent was £50 invoiced annually. The lease concluded on 3 February 2076. Considering the 50 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 exclusive of fees.
In 2011 we were called by Dr A Hernández who, having acquired a first floor apartment in Headingley in November 2001. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Comparable homes in Headingley with a long lease were in the region of £280,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease ran out in 2096. Considering the 70 years left we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of costs.