When it comes to domestic leasehold property in Leyburn, you are actually purchasing an entitlement to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably when there are less than eighty years left. Residents in Leyburn with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. When the lease term has below 80 years outstanding, under the relevant statute the freeholder is entitled to calculate and demand a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The conveyancers that we work with handle Leyburn lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In the wake of 6 months of protracted discussions with the landlord of her one bedroom apartment in Leyburn, Jennifer started the lease extension process just as her lease was approaching the critical 80-year threshold. The transaction was finalised in June 2008. The landlord’s charges were kept to an absolute minimum.
In 2011 we were approached by Mrs Zoe Davies who, having acquired a one bedroom apartment in Leyburn in November 2012. We are asked if we could estimate the price could be to extend the lease by 90 years. Identical homes in Leyburn with 100 year plus lease were worth £257,800. The average amount of ground rent was £65 billed monthly. The lease expired on 23 January 2090. Having 65 years remaining we estimated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of legals.
Last month we were contacted by Mr and Mrs. C Collins , who completed a one bedroom apartment in Leyburn in November 1999. The dilemma was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Identical homes in Leyburn with 100 year plus lease were valued about £196,400. The mid-range amount of ground rent was £55 invoiced quarterly. The lease concluded in 2079. Taking into account 54 years remaining we approximated the premium to the freeholder to extend the lease to be between £35,200 and £40,600 not including expenses.