Unfortunately that a Johnstown residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Johnstown property market.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than 80 years - otherwise a higher premium will be due. The majority of leasehold owners in Johnstown will be able to extend under the legislation; however a conveyancer should be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold premises in Johnstown with more than one hundred years remaining 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 home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| 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 freeholder in Johnstown,the lease extension solicitors 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 Johnstown valuers.
Max was the the leasehold proprietor of a high value flat in Johnstown on the market with a lease of a little over 72 years left. Max informally approached his freeholder a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Max to exercise his statutory right. Max procured expert legal guidance and was able to make a more informed decision and deal with the matter and sell the flat.
Ms F Hill purchased a newly refurbished apartment in Johnstown in April 2002. The question was if we could approximate the price could be to extend the lease by a further 90 years. Similar premises in Johnstown with 100 year plus lease were in the region of £205,000. The average ground rent payable was £50 billed per annum. The lease came to a finish in 2105. Taking into account 79 years left we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.
Last Summer we were called by Dr D Pérez , who bought a one bedroom apartment in Johnstown in January 1999. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by ninety years. Similar properties in Johnstown with an extended lease were worth £275,000. The average ground rent payable was £65 billed quarterly. The lease terminated in 2094. Considering the 68 years remaining we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of legals.