With a residential leasehold premises in Howden, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially when there are fewer than eighty years remaining. Anyone in Howden with a lease nearing 81 years left should seriously think of extending it without delay. Once the lease term has below 80 years remaining, under the current Act the landlord is entitled to calculate and levy a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Howden with over one hundred years outstanding on the lease are sometimes regarded as a ‘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 purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
| 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 landlord in Howden,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 Howden valuers.
Following unsuccessful discussions with the landlord of her studio flat in Howden, Sarah commenced the lease extension process as the 80 year deadline was fast approaching. The transaction was concluded in June 2011. The freeholder’s fees were restricted to under 450 GBP.
Last Autumn we were contacted by Mr U Ricardo , who acquired a one bedroom flat in Howden in March 2004. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparative homes in Howden with 100 year plus lease were in the region of £280,000. The average amount of ground rent was £55 invoiced yearly. The lease came to a finish on 9 April 2104. Taking into account 78 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 plus costs.
Last Winter we were e-mailed by Ms G Kelly , who bought a ground floor apartment in Howden in March 2002. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Identical properties in Howden with an extended lease were worth £183,600. The average ground rent payable was £65 billed monthly. The lease elapsed on 15 May 2083. Given that there were 57 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 not including costs.