Lydiate leases on domestic deteriorating in value. if your lease has about ninety years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease drops below this level then you begin incurring an additional element called marriage value. Flat owners in Lydiate will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In certain circumstances you may not be entitled. There are prescribed deadlines and steps to follow once the process is triggered so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Lydiate with in excess of 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Lydiate,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Lydiate valuers.
Tommy was the the leasehold owner of a 2 bedroom apartment in Lydiate on the market with a lease of a few days over 61 years left. Tommy on an informal basis contacted his landlord 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 rise in the rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Tommy to exercise his statutory right. Tommy obtained expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last Spring we were called by Dr Harry Clark , who took over the lease of a one bedroom apartment in Lydiate in June 2009. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Identical flats in Lydiate with a long lease were worth £205,000. The mid-range ground rent payable was £50 billed quarterly. The lease expired in 2105. Having 79 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £7,600 and £8,800 exclusive of expenses.
Last year we were called by Dr I Rodríguez , who took over the lease of a recently refurbished apartment in Lydiate in August 1998. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative residencies in Lydiate with 100 year plus lease were valued around £275,000. The average amount of ground rent was £65 collected monthly. The lease lapsed on 26 March 2094. Given that there were 68 years remaining we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.