The value of Leeds leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase materialy once the remaining term is below than eighty years
It is generally considered that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
The conveyancing solicitors that we work with handle Leeds 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.
Trailing lengthy negotiations with the landlord of her two bedroom apartment in Leeds, Eleanor commenced the lease extension process just as the lease was nearing the critical 80-year deadline. The legal work was concluded in April 2015. The freeholder’s fees were restricted to about 450 pounds.
Last Summer we were approach by Mrs Chelsea André , who purchased a basement flat in Leeds in March 2010. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Comparable homes in Leeds with a long lease were valued about £246,800. The mid-range ground rent payable was £60 billed monthly. The lease came to a finish in 2075. Given that there were 50 years unexpired we estimated the compensation to the landlord to extend the lease to be within £44,700 and £51,600 not including professional charges.
Last Christmas we were approach by Mrs A Nguyen , who moved into a ground floor apartment in Leeds in June 2005. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Similar residencies in Leeds with an extended lease were worth £203,200. The mid-range ground rent payable was £65 collected every twelve months. The lease came to a finish in 2086. Considering the 61 years remaining we calculated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 exclusive of costs.