The closer a domestic lease in Helmsley nears to zero years unexpired, the more it reduces the value of the property. If the lease has, beyond one hundred years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. Many flat owners in Helmsley will meet the qualifying criteria; however a lawyer should be able to confirm if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Helmsley with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
The conveyancers that we work with undertake Helmsley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
After lengthy correspondence with the landlord of her two bedroom flat in Helmsley, Amy commenced the lease extension process as the 80 year mark was quickly approaching. The lease extension was finalised in October 2011. The freeholder’s costs were negotiated to about 450 pounds.
In 2012 we were approached by Mr and Mrs. H Bennett who, having purchased a basement apartment in Helmsley in August 1996. The dilemma was if we could shed any light on how much (roughly) premium could be to extend the lease by a further 90 years. Identical flats in Helmsley with a long lease were valued about £243,000. The average amount of ground rent was £65 billed yearly. The lease terminated on 3 November 2088. Taking into account 63 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 not including professional charges.
Mr and Mrs. V Wright took over the lease of a ground floor flat in Helmsley in July 2011. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar premises in Helmsley with a long lease were in the region of £181,600. The mid-range ground rent payable was £55 collected per annum. The lease elapsed in 2077. Having 52 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 not including professional charges.