Leeds leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Leeds tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Leeds you really ought to investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
Leasehold premises in Leeds with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Leeds can be a difficult process. We recommend you get professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
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 a wealth of experience 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.
Off the back of lengthy correspondence with the landlord of her basement flat in Leeds, Emma initiated the lease extension process as the 80 year deadline was quickly coming. The lease extension was concluded in March 2010. The freeholder’s fees were kept to an absolute minimum.
Last Winter we were phoned by Dr F Williams , who acquired a ground floor apartment in Leeds in March 1998. The question was if we could shed any light on how much (approximately) premium would likely be to extend the lease by an additional years. Identical homes in Leeds with an extended lease were valued around £183,600. The average amount of ground rent was £65 invoiced per annum. The lease ended on 4 May 2082. Given that there were 57 years left we estimated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of legals.
In 2014 we were approached by Mr and Mrs. R Thompson who, having moved into a studio apartment in Leeds in August 2009. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparative homes in Leeds with a long lease were valued around £245,000. The average amount of ground rent was £45 collected monthly. The lease expiry date was on 2 November 2093. Considering the 68 years outstanding we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.