With a domestic leasehold premises in Leyland, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially once there are fewer than 80 years left. Residents in Leyland with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. When a lease has under eighty years remaining, under the relevant legislation the landlord can calculate and levy a larger amount, based on a technical calculation, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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 | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Leyland lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Trailing unsuccessful negotiations with the landlord of her studio flat in Leyland, Rachael initiated the lease extension process just as the lease was coming close to the critical eighty-year mark. The legal work was finalised in November 2006. The freeholder’s costs were kept to an absolute minimum.
In 2013 we were contacted by Mr and Mrs. B King who, having owned a ground floor flat in Leyland in April 2011. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Comparative homes in Leyland with an extended lease were valued about £265,200. The average ground rent payable was £65 billed annually. The lease lapsed in 2092. Considering the 66 years as a residual term we approximated the premium to the landlord for the lease extension to be between £15,200 and £17,600 plus costs.
In 2009 we were contacted by Mr and Mrs. J Davies who, having took over the lease of a ground floor flat in Leyland in March 2001. The dilemma was if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Similar premises in Leyland with 100 year plus lease were worth £198,800. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease concluded on 21 January 2081. Considering the 55 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 plus fees.