Market Weighton 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. Legislation has been in place for sometime now allowing qualifying Market Weighton residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Market Weighton you would be well advised to investigate if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you enhanced control over the value of your Market Weighton leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Jack was the the leasehold owner of a studio flat in Market Weighton being marketed with a lease of just over 61 years outstanding. Jack on an informal basis spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Jack to invoke his statutory right. Jack 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 January we were contacted by Ms K Jackson , who was assigned a lease of a studio apartment in Market Weighton in February 2009. We are asked if we could estimate the price could be to prolong the lease by an additional years. Similar premises in Market Weighton with 100 year plus lease were valued around £260,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease lapsed on 28 April 2096. Considering the 71 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
Mr Lewis Pérez owned a first floor apartment in Market Weighton in April 2006. The question was if we could shed any light on how much (roughly) price could be to extend the lease by a further 90 years. Comparative flats in Market Weighton with an extended lease were valued about £254,200. The average amount of ground rent was £60 invoiced quarterly. The lease finished in 2076. Given that there were 51 years left we approximated the premium to the freeholder for the lease extension to be between £43,700 and £50,600 exclusive of costs.