With a long leasehold premises in Leyland, you are actually buying a right to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are fewer than eighty years remaining. Anyone in Leyland with a lease drawing near to 81 years left should seriously think of extending it without delay. When a lease has below 80 years left, under the relevant Act the landlord can calculate and demand a larger premium, based on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| 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 secure professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 procuring Leyland lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Ethan owned a conversion flat in Leyland on the market with a lease of fraction over 61 years left. Ethan on an informal basis contacted his freeholder being a well known Manchester-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 a new rent to start with set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ethan to exercise his statutory right. Ethan procured expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.
In 2014 we were phoned by Mrs Rachel Evans who, having moved into a one bedroom apartment in Leyland in October 2009. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparable flats in Leyland with a long lease were worth £267,600. The mid-range amount of ground rent was £65 collected quarterly. The lease ended on 8 June 2092. Given that there were 67 years outstanding we estimated the premium to the landlord to extend the lease to be between £14,300 and £16,400 exclusive of professional charges.
Last Winter we were called by Mr and Mrs. V Nguyen , who was assigned a lease of a ground floor flat in Leyland in January 2005. The question was if we could estimate the price could be to extend the lease by a further 90 years. Similar properties in Leyland with an extended lease were worth £206,200. The average amount of ground rent was £60 billed per annum. The lease expiry date was on 15 February 2081. Considering the 56 years unexpired we calculated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of legals.