It’s a harsh truth that a Pudsey residential lease is a deteriorating 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 Pudsey property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. If the number of years remaining slips under 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most flat owners in Pudsey will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Pudsey,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Pudsey valuers.
Trailing protracted negotiations with the freeholder of her basement flat in Pudsey, Jessica initiated the lease extension process just as her lease was nearing the all-important 80-year deadline. The transaction was finalised in October 2011. The freeholder’s costs were negotiated to less than 500 GBP.
In 2011 we were approached by Mr and Mrs. H Campbell who, having was assigned a lease of a studio apartment in Pudsey in May 1998. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Comparative premises in Pudsey with an extended lease were in the region of £256,600. The average ground rent payable was £60 billed monthly. The lease finished in 2078. Having 52 years left we calculated the compensation to the landlord for the lease extension to be between £41,800 and £48,400 plus costs.
In 2013 we were e-mailed by Dr Omar Turner who, having moved into a garden apartment in Pudsey in November 2004. The dilemma was if we could estimate the price could be to extend the lease by an additional years. Comparative homes in Pudsey with a long lease were in the region of £215,600. The average amount of ground rent was £45 collected per annum. The lease ran out in 2088. Considering the 62 years left we approximated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 not including professional charges.