Riding Mill leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Riding Mill tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Riding Mill you must see if your lease has between seventy and 90 years remaining. There are good reasons why a Riding Mill flat owner with a lease having around eighty years remaining should take action to make sure that a lease extension is actioned without delay
Leasehold residencies in Riding Mill with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Riding Mill can be a difficult process. We recommend you procure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience procuring Riding Mill lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful correspondence with the freeholder of her first floor apartment in Riding Mill, Sian started the lease extension process just as her lease was coming close to the all-important eighty-year deadline. The transaction was concluded in September 2005. The landlord’s charges were kept to an absolute minimum.
In 2010 we were e-mailed by Dr P Morris who, having took over the lease of a garden flat in Riding Mill in March 2001. The question was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Identical homes in Riding Mill with an extended lease were in the region of £246,800. The mid-range ground rent payable was £60 billed quarterly. The lease finished in 2075. Taking into account 50 years remaining we estimated the premium to the freeholder for the lease extension to be within £44,700 and £51,600 exclusive of legals.
In 2009 we were called by Mr C Walker who, having was assigned a lease of a first floor apartment in Riding Mill in March 2010. We are asked if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Similar premises in Riding Mill with a long lease were in the region of £208,200. The mid-range amount of ground rent was £65 collected monthly. The lease terminated in 2086. Taking into account 61 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 plus expenses.