When it comes to residential leasehold premises in Robin Hoods Bay, you effectively rent it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially when there are less than 80 years remaining. Anyone in Robin Hoods Bay with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. When a lease has under eighty years outstanding, under the relevant Act the freeholder can calculate and charge a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold premises in Robin Hoods Bay with more than 100 years left 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 home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 Robin Hoods Bay can be a difficult process. We recommend you secure guidance from a conveyancer and surveyor with experience in lease extensions.
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 Robin Hoods Bay lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year James, started to get close to the eighty-year threshold with the lease on his leasehold flat in Robin Hoods Bay. Having purchased his home two decades ago, the lease term was of little bearing. Luckily, it dawned on him that he needed to take action soon on Extending the lease. James was able to extend his lease at the eleventh hour last May. James and the landlord eventually settled on sum of £5,500 . If he not met the deadline, the price would have escalated by a minimum £1,150.
In 2009 we were phoned by Dr Daisy David who, having was assigned a lease of a garden flat in Robin Hoods Bay in November 1999. The question was if we could estimate the premium would likely be for a 90 year lease extension. Comparative properties in Robin Hoods Bay with an extended lease were worth £285,000. The mid-range amount of ground rent was £45 collected monthly. The lease ended in 2097. Given that there were 72 years as a residual term we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including legals.
Dr O Ricardo acquired a recently refurbished apartment in Robin Hoods Bay in February 2001. We are asked if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Identical residencies in Robin Hoods Bay with a long lease were in the region of £233,200. The average ground rent payable was £60 collected monthly. The lease elapsed in 2086. Having 61 years left we calculated the premium to the landlord for the lease extension to be within £22,800 and £26,400 not including costs.