Leeds leases on domestic deteriorating in value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to be in place before the term of the current lease falls below 80 years - otherwise a higher amount will be due. Flat owners in Leeds will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In some situations you may not qualify. There are also strict timetables and procedures to comply with once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold premises in Leeds with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | 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. |
Lease extensions in Leeds can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Leeds lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Dylan, came dangerously near to the eighty-year threshold with the lease on his ground floor apartment in Leeds. In buying his flat two decades ago, the unexpired term was of no importance. by good luck, he recognised he would soon be paying way over the odds for a lease extension. Dylan was able to extend his lease just ahead of time last April. Dylan and the freeholder subsequently agreed on sum of £6,000 . If he failed to meet the deadline, the figure would have escalated by at least £925.
Mr and Mrs. H Rose purchased a purpose-built flat in Leeds in May 2001. The dilemma was if we could shed any light on how much (approximately) premium would be to prolong the lease by a further 90 years. Comparable flats in Leeds with 100 year plus lease were worth £210,600. The average ground rent payable was £45 invoiced every twelve months. The lease lapsed in 2087. Having 62 years left we calculated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 plus fees.
Last October we were called by Mrs R Phillips , who bought a ground floor apartment in Leeds in July 2003. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparative flats in Leeds with a long lease were in the region of £265,000. The average ground rent payable was £50 billed per annum. The lease concluded on 20 November 2098. Taking into account 73 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.