It’s a harsh certainty that a Lees and Moorside residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Lees and Moorside property market.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher premium will be due. Most leasehold owners in Lees and Moorside will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the process.
Leasehold residencies in Lees and Moorside with more than 100 years left on the lease are sometimes referred to as ‘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 upside in buying the reversionary interest unless savings on ground rent and estate 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Engaging our service gives you enhanced control over the value of your Lees and Moorside leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Kyle was the the leasehold owner of a conversion apartment in Lees and Moorside on the market with a lease of a little over 61 years remaining. Kyle on an informal basis contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £100 annually. No ground rent would be due on a lease extension were Kyle to invoke his statutory right. Kyle obtained expert legal guidance and secured satisfactory resolution informally and ending up with a market value flat.
In 2011 we were phoned by Mr and Mrs. D Harris who, having bought a basement flat in Lees and Moorside in February 2000. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Identical residencies in Lees and Moorside with an extended lease were valued around £260,000. The mid-range ground rent payable was £50 invoiced monthly. The lease came to a finish on 2 September 2097. Considering the 72 years remaining we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus costs.
Last Winter we were phoned by Dr C Thompson , who took over the lease of a purpose-built flat in Lees and Moorside in November 2010. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparative premises in Lees and Moorside with 100 year plus lease were valued about £261,600. The average amount of ground rent was £60 collected every twelve months. The lease concluded in 2077. Given that there were 52 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £39,000 and £45,000 exclusive of expenses.