With a domestic leasehold premises in Poppleton and Bishopthorpe, you are in fact renting it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than 80 years left. Residents in Poppleton and Bishopthorpe with a lease approaching 81 years remaining should seriously consider extending it sooner than later. Once a lease has below 80 years left, under the current legislation the landlord is entitled to calculate and charge a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold properties in Poppleton and Bishopthorpe with more than one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
The conveyancing solicitors that we work with undertake Poppleton and Bishopthorpe 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 lawyer we work with provide it.
Last year Leo, came precariously near to the 80-year mark with the lease on his basement flat in Poppleton and Bishopthorpe. In buying his property 18 years ago, the lease term was of no interest. Thankfully, he noticed he would soon be paying an inflated amount for Extending the lease. Leo arranged for a lease extension at the eleventh hour last January. Leo and the landlord eventually agreed on the final figure of £5,500 . If the lease had slipped to less than eighty years, the premium would have become more costly by at least £1,025.
In 2009 we were phoned by Ms Naomi Morris who, having completed a one bedroom apartment in Poppleton and Bishopthorpe in October 2009. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable premises in Poppleton and Bishopthorpe with a long lease were in the region of £218,000. The mid-range amount of ground rent was £45 collected quarterly. The lease elapsed on 18 October 2088. Considering the 63 years outstanding we approximated the premium to the landlord to extend the lease to be between £17,100 and £19,800 not including fees.
Last Winter we were e-mailed by Ms Jessica André , who moved into a one bedroom apartment in Poppleton and Bishopthorpe in March 2001. The question was if we could estimate the premium could be for a 90 year extension to my lease. Comparable homes in Poppleton and Bishopthorpe with a long lease were valued about £265,000. The mid-range amount of ground rent was £55 billed annually. The lease elapsed in 2099. Taking into account 74 years as a residual term we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.