Unfortunately that a Leyland residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Leyland property prices.Once your lease nears 85ish years, you should start thinking about a lease extension. If lease term slips under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Leyland will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold residencies in Leyland with more than one hundred years left on the lease are often regarded as a ‘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 to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Leyland,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Leyland valuers.
Isaac was the the leasehold owner of a conversion apartment in Leyland being sold with a lease of a little over 59 years unexpired. Isaac on an informal basis contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Isaac to invoke his statutory right. Isaac procured expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Last Christmas we were contacted by Mr and Mrs. P Bennett , who purchased a garden apartment in Leyland in April 2003. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Comparable homes in Leyland with an extended lease were worth £240,600. The mid-range amount of ground rent was £60 billed annually. The lease terminated in 2088. Taking into account 62 years left we estimated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 plus legals.
In 2013 we were phoned by Dr Alice Morgan who, having took over the lease of a recently refurbished flat in Leyland in April 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year extension to my lease. Comparable homes in Leyland with an extended lease were valued about £174,200. The mid-range amount of ground rent was £55 collected quarterly. The lease finished on 20 January 2077. Having 51 years outstanding we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of expenses.