Robin Hoods Bay leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Robin Hoods Bay tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. If you are a leasehold owner in Robin Hoods Bay you must check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
Irrespective of whether you are a tenant or a landlord in Robin Hoods Bay,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Robin Hoods Bay valuers.
In the wake of 9 months of unsuccessful negotiations with the freeholder of her two bedroom flat in Robin Hoods Bay, Jade initiated the lease extension process as the 80 year deadline was fast approaching. The transaction completed in February 2007. The freeholder’s costs were negotiated to under 700 GBP.
Last Autumn we were approach by Mr and Mrs. V Brooks , who moved into a garden flat in Robin Hoods Bay in February 2012. The question was if we could shed any light on how much (roughly) price would likely be to extend the lease by ninety years. Identical premises in Robin Hoods Bay with a long lease were in the region of £184,000. The average amount of ground rent was £55 invoiced yearly. The lease expired in 2078. Taking into account 53 years left we calculated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 not including expenses.
In 2011 we were called by Ms Holly Nguyen who, having bought a studio apartment in Robin Hoods Bay in September 1999. The question was if we could estimate the price would be to prolong the lease by 90 years. Comparative premises in Robin Hoods Bay with an extended lease were worth £290,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease expired in 2098. Considering the 73 years outstanding we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.