Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Mirfield. Inevitably, the length of lease left shortens as time goes by. This is often ignored and only raises itself as an issue when the property has to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in Mirfield have the legal entitlement to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. You should give due consideration before delaying your Mirfield lease extension. Holding off that expense now simply increases the price you will eventually have to pay to extend your lease
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| 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. |
The conveyancers that we work with handle Mirfield 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 conveyancer we work with provide it.
Off the back of unsuccessful correspondence with the landlord of her ground floor apartment in Mirfield, Jennifer initiated the lease extension process as the eighty year mark was rapidly coming. The legal work was finalised in May 2007. The landlord’s costs were kept to an absolute minimum.
Last Summer we were contacted by Dr Noah Moore , who took over the lease of a purpose-built apartment in Mirfield in May 2011. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Comparable properties in Mirfield with a long lease were in the region of £166,800. The average amount of ground rent was £50 billed annually. The lease terminated in 2076. Considering the 50 years outstanding we calculated the premium to the landlord to extend the lease to be between £32,300 and £37,400 not including legals.
In 2012 we were contacted by Dr Jade Martínez who, having took over the lease of a one bedroom apartment in Mirfield in January 2011. We are asked if we could approximate the price would likely be for a 90 year lease extension. Identical properties in Mirfield with 100 year plus lease were worth £280,000. The average amount of ground rent was £45 collected per annum. The lease finished on 9 January 2096. Considering the 70 years left we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus fees.