Helmsley residential property owned on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.
Leasehold properties in Helmsley with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Helmsley can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor 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 a wealth of experience procuring Helmsley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Teddy was the the leasehold proprietor of a conversion apartment in Helmsley on the market with a lease of a little over 59 years outstanding. Teddy on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Teddy to invoke his statutory right. Teddy obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.
Mr and Mrs. J Miller owned a purpose-built flat in Helmsley in February 2003. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by 90 years. Similar properties in Helmsley with 100 year plus lease were in the region of £295,000. The average amount of ground rent was £45 billed yearly. The lease elapsed on 8 October 2100. Considering the 75 years left we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus costs.
Last year we were e-mailed by Mr F Lefèvre , who owned a one bedroom flat in Helmsley in November 2009. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Similar flats in Helmsley with a long lease were valued about £250,400. The average ground rent payable was £65 invoiced monthly. The lease expired in 2089. Given that there were 64 years unexpired we estimated the premium to the landlord to extend the lease to be within £19,000 and £22,000 plus legals.