New Farnley leases on residential properties are gradually losing value. if your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you begin paying an additional element called marriage value. Leasehold owners in New Farnley will usually be legally entitled to a lease extension; however a solicitor should be able confirm your eligibility. In certain situations you may not be entitled. There are prescribed deadlines and formalities to comply with once the process has commenced so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
Engaging our service will provide you enhanced control over the value of your New Farnley leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Mason, started to get near to the 80-year threshold with the lease on his studio apartment in New Farnley. Having bought his home 19 years previously, the length of the lease was of minimal bearing. As luck would have it, it dawned on him that he needed to take steps soon on a lease extension. Mason extended the lease just ahead of time in May. Mason and the landlord ultimately settled on an amount of £6,000 . If he not met the deadline, the amount would have escalated by at least £850.
Mr and Mrs. Y Hernández completed a basement apartment in New Farnley in May 2011. We are asked if we could approximate the premium could be to prolong the lease by a further 90 years. Similar homes in New Farnley with an extended lease were worth £193,400. The mid-range amount of ground rent was £65 billed monthly. The lease ran out on 25 September 2084. Taking into account 59 years left we calculated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of professional charges.
In 2014 we were called by Mr and Mrs. T Campbell who, having was assigned a lease of a first floor apartment in New Farnley in April 2002. The question was if we could approximate the premium would be for a ninety year lease extension. Comparative flats in New Farnley with 100 year plus lease were in the region of £255,000. The mid-range ground rent payable was £50 collected annually. The lease terminated in 2095. Given that there were 70 years as a residual term we estimated the premium to the landlord for the lease extension to be between £10,500 and £12,000 not including costs.