For anyone whose Leyland flat is held on a long lease, our message is clear – if you ignore the situation, your property will eventually revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension.
Leasehold premises in Leyland with in excess of one hundred 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 home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you increased control over the value of your Leyland leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful correspondence with the landlord of her one bedroom flat in Leyland, Louise started the lease extension process just as her lease was approaching the critical eighty-year mark. The lease extension was concluded in September 2009. The landlord’s charges were negotiated to under 450 pounds.
In 2010 we were e-mailed by Mr and Mrs. N Clarke who, having completed a first floor apartment in Leyland in November 1997. The dilemma was if we could approximate the premium would be for a 90 year extension to my lease. Similar homes in Leyland with an extended lease were worth £290,000. The average amount of ground rent was £45 billed annually. The lease came to a finish in 2098. Considering the 72 years remaining we estimated the premium to the landlord for the lease extension to be within £11,400 and £13,200 exclusive of legals.
Ms Elizabeth Stewart took over the lease of a garden apartment in Leyland in May 1998. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Identical flats in Leyland with a long lease were worth £233,200. The average ground rent payable was £60 collected monthly. The lease terminated in 2087. Given that there were 61 years left we approximated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 exclusive of professional charges.