It’s a harsh truth that a Market Weighton residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Market Weighton property prices.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher premium will be due. The majority of leasehold owners in Market Weighton will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some cases 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 for the duration of the formalities.
Leasehold properties in Market Weighton with over one hundred years unexpired on the lease are sometimes regarded as a ‘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 purchasing the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Engaging our service will provide you better control over the value of your Market Weighton leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Tommy owned a conversion apartment in Market Weighton on the market with a lease of fraction over 59 years remaining. Tommy on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Tommy to exercise his statutory right. Tommy procured expert legal guidance and secured an acceptable deal informally and sell the property.
In 2014 we were e-mailed by Mr Leo Ward who, having purchased a garden flat in Market Weighton in June 2000. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Similar homes in Market Weighton with a long lease were in the region of £225,400. The average ground rent payable was £45 collected quarterly. The lease expired on 20 February 2089. Given that there were 64 years remaining we calculated the compensation to the freeholder to extend the lease to be between £15,200 and £17,600 not including expenses.
Mr and Mrs. K Pérez bought a one bedroom apartment in Market Weighton in April 2002. We are asked if we could approximate the price would be to extend the lease by an additional years. Comparative residencies in Market Weighton with a long lease were in the region of £270,000. The average ground rent payable was £55 invoiced annually. The lease concluded on 25 September 2100. Taking into account 75 years outstanding we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.