Market Weighton leases on residential properties are gradually losing value. Where your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. If lease term is under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Market Weighton will usually qualify for a lease extension; however a solicitor will confirm if you qualify. In some situations you may not be entitled. There are prescribed timetables and steps to follow once the process is triggered so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 lawyers that we work with handle Market Weighton 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.
Off the back of lengthy negotiations with the landlord of her purpose-built apartment in Market Weighton, Niamh commenced the lease extension process as the eighty year mark was swiftly nearing. The legal work completed in September 2009. The landlord’s costs were negotiated to approximately 700 pounds.
In 2013 we were approached by Ms T Peterson who, having completed a one bedroom flat in Market Weighton in May 1997. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable premises in Market Weighton with 100 year plus lease were valued about £261,600. The mid-range amount of ground rent was £60 billed annually. The lease terminated on 7 September 2077. Taking into account 52 years unexpired we calculated the premium to the landlord to extend the lease to be between £39,000 and £45,000 plus legals.
Last Spring we were phoned by Ms H Roberts , who was assigned a lease of a one bedroom flat in Market Weighton in October 2004. The dilemma was if we could estimate the premium would be for a 90 year extension to my lease. Comparable flats in Market Weighton with an extended lease were in the region of £218,000. The average ground rent payable was £45 invoiced quarterly. The lease elapsed on 22 May 2088. Taking into account 63 years remaining we estimated the premium to the freeholder to extend the lease to be within £17,100 and £19,800 exclusive of expenses.