The market value of a leasehold property in Robin Hoods Bay depends on how many years the lease has left to run. If it is near to or less than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. Ideally one should start the lease extension process when the lease still has 82 years remaining so that all matters can be addressed in advance of the 80 year threshold. Current legislation entitles Robin Hoods Bay qualifying lessees to an additional term of ninety years in addition to the remaining term, at a peppercorn rent (no ground rent). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Robin Hoods Bay with in excess of one hundred years unexpired 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 situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Using our service will provide you enhanced control over the value of your Robin Hoods Bay leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Jackson was the the leasehold proprietor of a conversion apartment in Robin Hoods Bay being marketed with a lease of a little over 59 years remaining. Jackson informally contacted his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jackson to exercise his statutory right. Jackson obtained expert legal guidance and secured an acceptable deal informally and sell the property.
Last Spring we were approach by Mr and Mrs. J Reed , who purchased a garden apartment in Robin Hoods Bay in January 2004. The question was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable homes in Robin Hoods Bay with an extended lease were in the region of £166,800. The mid-range ground rent payable was £50 collected yearly. The lease elapsed on 23 May 2076. Given that there were 50 years left we estimated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of professional charges.
In 2010 we were contacted by Dr Callum Rodríguez who, having owned a garden apartment in Robin Hoods Bay in June 2000. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar properties in Robin Hoods Bay with an extended lease were valued about £280,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease elapsed in 2096. Taking into account 70 years unexpired we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus costs.