With a domestic leasehold property in Ilkley, you are in fact renting it for a certain amount of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy 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 becomes disproportionately greater particularly once there are less than eighty years remaining. Residents in Ilkley with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. When a lease has less than eighty years remaining, under the current statute the landlord is entitled to calculate and charge a larger premium, assessed on a technical computation, known as “marriage value” which is due.
It is generally accepted that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Engaging our service will provide you enhanced control over the value of your Ilkley leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last Winter Stanley, started to get near to the 80-year mark with the lease on his studio flat in Ilkley. In buying his home two decades ago, the unexpired term was of no importance. As luck would have it, he noticed he needed to take action soon on Extending the lease. Stanley was able to extend his lease just under the wire last April. Stanley and the freeholder eventually settled on sum of £6,000 . If the lease had fallen to less than eighty years, the premium would have increased by at least £1,025.
Mr and Mrs. D Davies took over the lease of a newly refurbished apartment in Ilkley in July 2007. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Identical homes in Ilkley with 100 year plus lease were in the region of £275,000. The mid-range ground rent payable was £55 collected yearly. The lease ran out on 11 September 2102. Considering the 76 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.
In 2014 we were e-mailed by Dr Sian Bailey who, having purchased a first floor flat in Ilkley in August 2010. The question was if we could estimate the price would be to extend the lease by ninety years. Identical homes in Ilkley with 100 year plus lease were in the region of £176,200. The average amount of ground rent was £65 collected quarterly. The lease terminated on 28 April 2082. Given that there were 56 years outstanding we calculated the premium to the landlord to extend the lease to be within £29,500 and £34,000 plus costs.