With a domestic leasehold property in Northern Moor, you effectively rent it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly when there are fewer than eighty years remaining. Anyone in Northern Moor with a lease drawing near to 81 years left should seriously think of extending it sooner rather than later. When the lease term has under eighty years outstanding, under the relevant Act the landlord can calculate and demand a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Northern Moor with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth 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 merit it.
| Lender | Requirement |
|---|---|
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Using our service gives you increased control over the value of your Northern Moor leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last Autumn Jack, came critically close to the eighty-year threshold with the lease on his leasehold apartment in Northern Moor. Having bought his property two decades ago, the length of the lease was of minimal relevance. Luckily, he recognised he would imminently be paying an escalated premium for a lease extension. Jack extended the lease at the eleventh hour in March. Jack and the landlord in the end settled on a premium of £5,500 . If he had missed the deadline, the sum would have escalated by at least £900.
Dr J Gómez bought a garden flat in Northern Moor in August 1995. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Comparative premises in Northern Moor with an extended lease were valued around £171,800. The average amount of ground rent was £55 collected per annum. The lease ran out on 8 June 2075. Taking into account 50 years unexpired we estimated the premium to the landlord for the lease extension to be within £33,300 and £38,400 plus expenses.
Last year we were phoned by Ms Alisha Harris , who completed a ground floor apartment in Northern Moor in March 2001. The question was if we could estimate the price would be to extend the lease by 90 years. Similar premises in Northern Moor with a long lease were worth £280,000. The average ground rent payable was £45 collected yearly. The lease expiry date was on 19 July 2095. Taking into account 70 years outstanding we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus costs.