It’s a harsh truth 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 taken for granted in the early 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 should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher premium will be payable. Most flat owners in Poppleton and Bishopthorpe will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the process.
Leasehold properties in Poppleton and Bishopthorpe with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate 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. |
| 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. |
| Halifax | 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure 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 conveyancing solicitor we work with provide it.
Last October Lewis, started to get close to the eighty-year mark with the lease on his first floor flat in Poppleton and Bishopthorpe. Having bought his flat 19 years ago, the unexpired term was of no relevance. As luck would have it, he became aware that he needed to take steps soon on a lease extension. Lewis was able to extend his lease just ahead of time in January. Lewis and the freeholder via the management company ultimately agreed on the final figure of £5,500 . If he not met the deadline, the figure would have become more costly by at least £850.
Last Autumn we were e-mailed by Mr Theo Hernández , who took over the lease of a one bedroom flat in Poppleton and Bishopthorpe in September 2001. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative properties in Poppleton and Bishopthorpe with a long lease were in the region of £260,000. The average ground rent payable was £50 collected quarterly. The lease termination date was in 2098. Given that there were 72 years remaining we approximated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.
In 2014 we were approached by Dr John Fournier who, having completed a one bedroom apartment in Poppleton and Bishopthorpe in May 1998. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by an additional years. Comparative premises in Poppleton and Bishopthorpe with 100 year plus lease were worth £256,600. The mid-range ground rent payable was £60 collected every twelve months. The lease expired on 7 June 2078. Considering the 52 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £39,000 and £45,000 exclusive of fees.