There is no doubt about it a leasehold flat or house in Pickering is a wasting asset as a result of the shortening lease. Where the residual term has, in excess of 125 years to run then this decrease may be negligible however there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary reason why you should extend the lease sooner rather than later. Many flat owners in Pickering will qualify for this right; nevertheless a lawyer will be able to confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, 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. |
| 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. |
| 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 |
| 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. |
Lease extensions in Pickering can be a difficult process. We recommend you get guidance from a conveyancer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Pickering lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of protracted discussions with the landlord of her first floor apartment in Pickering, Amelia initiated the lease extension process as the eighty year threshold was swiftly advancing. The transaction was concluded in October 2008. The freeholder’s fees were kept to an absolute minimum.
In 2011 we were approached by Dr Harrison James who, having took over the lease of a one bedroom flat in Pickering in January 2002. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Comparable residencies in Pickering with a long lease were worth £255,000. The average amount of ground rent was £50 invoiced annually. The lease end date was on 23 November 2095. Taking into account 70 years remaining we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including professional charges.
Dr Joshua David acquired a ground floor flat in Pickering in March 2010. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparative premises in Pickering with a long lease were worth £246,800. The mid-range amount of ground rent was £60 collected yearly. The lease lapsed in 2075. Having 50 years remaining we calculated the compensation to the landlord for the lease extension to be between £44,700 and £51,600 exclusive of expenses.