For those whose Leek flat is held on a long lease, the message is clear – if you do nothing, the property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to obtain a lease extension.
Leasehold residencies in Leek with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Irrespective of whether you are a tenant or a landlord in Leek,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Leek valuers.
After unsuccessful discussions with the freeholder of her leasehold apartment in Leek, Alice started the lease extension process as the eighty year mark was swiftly approaching. The lease extension completed in June 2015. The freeholder’s charges were negotiated to below 700 GBP.
Mr and Mrs. P Kelly was assigned a lease of a purpose-built flat in Leek in October 2010. The question was if we could estimate the premium would be to extend the lease by a further 90 years. Comparable premises in Leek with 100 year plus lease were worth £250,000. The mid-range ground rent payable was £50 collected quarterly. The lease end date was on 3 May 2094. Given that there were 69 years as a residual term we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.
In 2011 we were called by Mr and Mrs. U López who, having took over the lease of a studio flat in Leek in July 2004. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by a further 90 years. Similar homes in Leek with 100 year plus lease were in the region of £290,000. The average ground rent payable was £60 billed monthly. The lease elapsed on 15 February 2105. Considering the 80 years left we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of legals.