Lydiate and Melling residential property owned on a long lease is a wasting asset because a leaseholder merely owns the property for a period of years.
Leasehold residencies in Lydiate and Melling with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant 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. |
| 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; |
| 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. |
The conveyancing solicitors that we work with undertake Lydiate and Melling 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 lawyer we work with provide it.
Following lengthy correspondence with the landlord of her ground floor apartment in Lydiate and Melling, Aimee commenced the lease extension process just as the lease was approaching the crucial 80-year deadline. The transaction completed in April 2005. The landlord’s charges were restricted to a tad over 450 GBP.
Dr Jack Carter was assigned a lease of a garden apartment in Lydiate and Melling in August 2001. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Comparative properties in Lydiate and Melling with 100 year plus lease were valued about £200,800. The mid-range amount of ground rent was £65 billed monthly. The lease finished on 25 February 2086. Given that there were 60 years unexpired we calculated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 not including costs.
Last Winter we were approach by Mr and Mrs. L Taylor , who bought a garden apartment in Lydiate and Melling in September 2004. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable premises in Lydiate and Melling with a long lease were in the region of £260,000. The mid-range ground rent payable was £50 billed monthly. The lease finished on 7 February 2097. Taking into account 71 years as a residual term we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.