Lancaster leases on residential deteriorating in value. Where your lease has approximately 90 years left, you should start thinking about a lease extension. If lease term dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Lancaster will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In certain situations you may not be entitled. There are also strict deadlines and formalities to follow once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as 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. |
| 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. |
The conveyancing solicitors that we work with undertake Lancaster 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 conveyancing solicitor we work with provide it.
In the wake of eight months of unsuccessful correspondence with the freeholder of her garden flat in Lancaster, Francesca initiated the lease extension process as the 80 year deadline was rapidly approaching. The transaction was concluded in June 2005. The freeholder’s charges were restricted to slightly above 550 pounds.
In 2011 we were approached by Mr and Mrs. V Morris who, having purchased a ground floor apartment in Lancaster in July 1998. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Comparative residencies in Lancaster with an extended lease were in the region of £285,000. The average ground rent payable was £45 collected annually. The lease ended on 12 February 2097. Having 71 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.
Ms S Dupont acquired a purpose-built apartment in Lancaster in July 2010. The question was if we could approximate the premium would be for a 90 year lease extension. Identical homes in Lancaster with a long lease were valued about £230,800. The mid-range ground rent payable was £60 billed yearly. The lease came to a finish in 2086. Considering the 60 years left we calculated the premium to the freeholder to extend the lease to be within £24,700 and £28,600 not including expenses.