Robin Hoods Bay leases on residential properties are gradually losing value. Where your lease has approximately ninety years unexpired, you should start thinking about a lease extension. If lease term is less than 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Robin Hoods Bay will usually be legally entitled to a lease extension; however a solicitor will check your eligibility. In certain circumstances you may not qualify. There are prescribed deadlines and formalities to follow once the process is initiated so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold premises in Robin Hoods Bay with more than 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Robin Hoods Bay can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor 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 in-depth market knowledge dealing with 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.
Twenty four months ago Charlie, came precariously close to the eighty-year mark with the lease on his studio apartment in Robin Hoods Bay. Having purchased his home 18 years previously, the unexpired term was of little concern. Thankfully, he noticed he needed to take steps soon on Extending the lease. Charlie arranged for a lease extension at the eleventh hour in April. Charlie and the landlord subsequently agreed on sum of £5,000 . If he not met the deadline, the figure would have escalated by a minimum £1,075.
Dr C Richardson was assigned a lease of a ground floor apartment in Robin Hoods Bay in February 1997. The question was if we could shed any light on how much (approximately) premium would be to extend the lease by ninety years. Similar homes in Robin Hoods Bay with a long lease were valued about £235,600. The average ground rent payable was £60 billed yearly. The lease ran out on 26 January 2088. Taking into account 62 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 exclusive of professional charges.
Last year we were phoned by Mr and Mrs. H Murphy , who bought a purpose-built flat in Robin Hoods Bay in June 1998. The dilemma was if we could shed any light on how much (roughly) premium could be to extend the lease by ninety years. Similar properties in Robin Hoods Bay with an extended lease were valued around £174,200. The average ground rent payable was £55 invoiced annually. The lease ended on 25 October 2077. Considering the 51 years outstanding we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of expenses.