The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Leeds may extend the lease for a further 90 years in accordance with legislation. Please think carefully before delaying your Leeds lease extension. Postponing that expense today simply increases the price you will eventually have to pay for a lease extension.
Leasehold premises in Leeds with in excess of one hundred years left 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 premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake 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 conveyancer we work with provide it.
Twenty four months ago Kyle, came dangerously close to the 80-year mark with the lease on his garden flat in Leeds. Having purchased his home 18 years ago, the length of the lease was of no significance. Thankfully, it dawned on him that he would soon be paying an escalated premium for a lease extension. Kyle arranged for a lease extension just under the wire in September. Kyle and the freeholder via the managing agents eventually agreed on the final figure of £5,500 . If the lease had slipped to less than 80 years, the figure would have gone up by at least £950.
Dr N Flores moved into a studio apartment in Leeds in March 2004. The dilemma was if we could approximate the premium would be to prolong the lease by a further 90 years. Comparable properties in Leeds with a long lease were in the region of £256,600. The mid-range ground rent payable was £60 collected yearly. The lease finished in 2078. Taking into account 52 years remaining we estimated the premium to the freeholder to extend the lease to be within £41,800 and £48,400 plus professional charges.
Mr and Mrs. Y Khan acquired a studio apartment in Leeds in April 1998. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Comparative homes in Leeds with a long lease were in the region of £218,000. The average ground rent payable was £45 collected per annum. The lease expired in 2089. Considering the 63 years as a residual term we approximated the premium to the landlord for the lease extension to be within £17,100 and £19,800 not including legals.