For those whose Leyland home is held on a long lease, the message is clear – if no remedial action is taken, the property will ultimately revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you enhanced control over the value of your Leyland leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Tyler was the the leasehold owner of a studio apartment in Leyland on the market with a lease of a few days over 59 years left. Tyler informally approached his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Tyler to invoke his statutory right. Tyler obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.
In 2014 we were phoned by Mr R Phillips who, having bought a one bedroom flat in Leyland in November 2007. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparable residencies in Leyland with 100 year plus lease were worth £208,600. The average ground rent payable was £60 invoiced quarterly. The lease finished on 9 September 2083. Taking into account 57 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 not including fees.
Ms L Gray purchased a first floor apartment in Leyland in September 2002. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year lease extension. Similar flats in Leyland with 100 year plus lease were in the region of £200,000. The mid-range ground rent payable was £50 collected annually. The lease concluded on 12 October 2103. Having 77 years outstanding we calculated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus legals.