Leyland leases on domestic deteriorating in value. if your lease has about 90 years left, you should start thinking about a lease extension. If lease term falls under eighty years, you will then have to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Leyland will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In certain situations you may not qualify. There are also strict deadlines and formalities to follow once the process has commenced so it’s prudent to be guided by a lawyer during the process.
Leasehold residencies in Leyland with in excess of 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Leyland can be a difficult process. We recommend you get professional help from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Leyland lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Spring Kian, started to get close to the 80-year mark with the lease on his leasehold flat in Leyland. Having bought his flat two decades ago, the unexpired term was of minimal relevance. As luck would have it, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Kian was able to extend his lease just under the wire in March. Kian and the landlord subsequently agreed on the final figure of £6,000 . If he failed to meet the deadline, the sum would have become more costly by at least £975.
Mr and Mrs. V Bell owned a first floor flat in Leyland in March 1998. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Identical residencies in Leyland with an extended lease were valued around £206,200. The average amount of ground rent was £60 collected quarterly. The lease finished in 2082. Considering the 56 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 not including expenses.
Mr and Mrs. S Khan acquired a basement apartment in Leyland in February 1995. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Similar homes in Leyland with 100 year plus lease were worth £300,000. The average ground rent payable was £50 collected every twelve months. The lease ended in 2102. Taking into account 76 years left we approximated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of fees.