Unfortunately that a Leyburn residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Leyburn property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If lease term dips under 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Leyburn will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Leyburn leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Nathan, came precariously close to the eighty-year threshold with the lease on his garden flat in Leyburn. Having purchased his flat 19 years previously, the lease term was of minimal significance. by good luck, he realised he needed to take action soon on a lease extension. Nathan arranged for a lease extension at the eleventh hour last September. Nathan and the landlord who owned the flat above ultimately settled on the final figure of £5,500 . If the lease had slid to less than 80 years, the price would have escalated by at least £950.
Last Winter we were called by Ms Amber Stewart , who completed a purpose-built flat in Leyburn in July 1999. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Similar residencies in Leyburn with a long lease were valued about £216,000. The mid-range amount of ground rent was £60 billed quarterly. The lease terminated in 2083. Having 58 years left we estimated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of costs.
In 2011 we were contacted by Dr P Davis who, having owned a studio apartment in Leyburn in October 1995. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Identical premises in Leyburn with 100 year plus lease were in the region of £205,000. The mid-range ground rent payable was £50 billed quarterly. The lease finished on 3 October 2104. Considering the 79 years remaining we approximated the premium to the freeholder for the lease extension to be between £7,600 and £8,800 exclusive of fees.