Market Deeping leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. It is the case that most Market Deeping tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Market Deeping you would be well advised to investigate if your lease has between 70 and ninety years left. There are good reasons why a Market Deeping leaseholder with a lease having around eighty years left should take action to ensure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| 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. |
| 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 |
| 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. |
Using our service gives you enhanced control over the value of your Market Deeping leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Luca owned a conversion flat in Market Deeping being sold with a lease of a little over fifty eight years remaining. Luca on an informal basis contacted his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Luca to exercise his statutory right. Luca procured expert legal guidance and secured an acceptable deal informally and readily saleable.
Last Summer we were called by Mr and Mrs. E Sharif , who completed a garden flat in Market Deeping in November 1997. We are asked if we could estimate the price would be for a 90 year extension to my lease. Identical flats in Market Deeping with a long lease were worth £280,000. The mid-range ground rent payable was £45 invoiced yearly. The lease expiry date was on 19 February 2095. Having 69 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including fees.
Mr and Mrs. R Thompson purchased a basement apartment in Market Deeping in July 2004. The dilemma was if we could approximate the premium would be for a 90 year extension to my lease. Comparative flats in Market Deeping with an extended lease were in the region of £218,400. The average amount of ground rent was £60 billed annually. The lease concluded on 28 April 2085. Having 59 years outstanding we calculated the premium to the landlord for the lease extension to be between £27,600 and £31,800 plus legals.