It’s a harsh certainty that a Poppleton and Bishopthorpe residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Poppleton and Bishopthorpe property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. If lease term dips below 80 years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Poppleton and Bishopthorpe will be able to extend under the legislation; however a conveyancer should be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold properties in Poppleton and Bishopthorpe with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 Poppleton and Bishopthorpe leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted correspondence with the landlord of her two bedroom apartment in Poppleton and Bishopthorpe, Isabelle commenced the lease extension process as the 80 year deadline was fast approaching. The lease extension completed in June 2013. The landlord’s charges were kept to an absolute minimum.
Last month we were approach by Mr and Mrs. K Miller , who purchased a first floor apartment in Poppleton and Bishopthorpe in March 2004. The dilemma was if we could estimate the price would likely be for a ninety year lease extension. Comparable flats in Poppleton and Bishopthorpe with a long lease were in the region of £254,200. The mid-range amount of ground rent was £60 billed quarterly. The lease end date was in 2076. Given that there were 51 years left we calculated the compensation to the freeholder to extend the lease to be within £43,700 and £50,600 plus fees.
In 2010 we were e-mailed by Mr H Michel who, having acquired a purpose-built apartment in Poppleton and Bishopthorpe in October 2003. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Similar residencies in Poppleton and Bishopthorpe with a long lease were in the region of £210,600. The average amount of ground rent was £45 billed quarterly. The lease terminated in 2087. Considering the 62 years remaining we approximated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 plus professional charges.