It’s an underpublicised truth that a Low Fell 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 Low Fell property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. If lease term falls 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. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Low Fell will be able to extend under the legislation; however a lawyer should be able to confirm whether you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold properties in Low Fell with over one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. 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. |
| 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. |
| 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. |
| 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. |
Lease extensions in Low Fell can be a difficult process. We recommend you get 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 a wealth of experience procuring Low Fell lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Summer Ryan, started to get near to the 80-year mark with the lease on his basement flat in Low Fell. In buying his flat two decades ago, the length of the lease was of minimal importance. by good luck, he realised he needed to take action soon on a lease extension. Ryan arranged for a lease extension just ahead of time last April. Ryan and the landlord subsequently settled on a premium of £6,000 . If the lease had dropped to less than eighty years, the amount would have gone up by at least £875.
In 2010 we were contacted by Mr and Mrs. D Fournier who, having completed a one bedroom apartment in Low Fell in March 2008. The question was if we could estimate the price could be to extend the lease by 90 years. Comparative homes in Low Fell with 100 year plus lease were in the region of £218,400. The mid-range amount of ground rent was £60 billed annually. The lease expired in 2085. Given that there were 59 years remaining we calculated the compensation to the freeholder for the lease extension to be within £27,600 and £31,800 not including expenses.
Last month we were e-mailed by Dr E Richardson , who completed a one bedroom flat in Low Fell in August 1998. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Similar premises in Low Fell with 100 year plus lease were valued around £205,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease elapsed in 2105. Having 79 years left we approximated the compensation to the landlord for the lease extension to be between £7,600 and £8,800 not including legals.