Unfortunately that a Leyland residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Leyland property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. If the number of years remaining drops below 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Leyland will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. 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 for the duration of the process.
Leasehold properties in Leyland with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify 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. |
| Bank of Scotland | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Leyland,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Leyland valuers.
Owen was the the leasehold proprietor of a 2 bedroom flat in Leyland on the market with a lease of just over 61 years unexpired. Owen on an informal basis approached his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 per annum. No ground rent would be due on a lease extension were Owen to exercise his statutory right. Owen procured expert legal guidance and was able to make a more informed decision and handle with the matter and sell the flat.
In 2009 we were approached by Mr and Mrs. E Davis who, having was assigned a lease of a ground floor apartment in Leyland in June 2002. We are asked if we could approximate the premium would likely be for a 90 year extension to my lease. Comparative residencies in Leyland with 100 year plus lease were worth £205,000. The average amount of ground rent was £50 collected yearly. The lease came to a finish on 21 January 2103. Taking into account 78 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus legals.
In 2012 we were called by Dr A Fournier who, having bought a basement apartment in Leyland in March 1996. The dilemma was if we could approximate the price could be for a 90 year lease extension. Similar properties in Leyland with a long lease were worth £267,600. The average amount of ground rent was £65 invoiced per annum. The lease ran out on 7 February 2092. Given that there were 67 years remaining we calculated the premium to the freeholder to extend the lease to be between £14,300 and £16,400 not including fees.