When it comes to residential leasehold premises in Scarborough, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than 80 years remaining. Residents in Scarborough with a lease drawing near to 81 years unexpired should seriously consider extending it sooner than later. Once a lease has less than eighty years left, under the current statute the freeholder is entitled to calculate and levy a greater amount, based on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| 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 Scarborough can be a difficult process. We recommend you get guidance from a lawyer and valuer with experience in this area.
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 procuring Scarborough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Aarav, started to get near to the 80-year mark with the lease on his one bedroom flat in Scarborough. In buying his flat two decades ago, the length of the lease was of no bearing. Fortunately, he recognised he would imminently be paying way over the odds for a lease extension. Aarav extended the lease at the eleventh hour last July. Aarav and the freeholder ultimately settled on an amount of £6,000 . If the lease had dipped lower than eighty years, the price would have gone up by at least £975.
In 2013 we were e-mailed by Mr Teddy Jones who, having moved into a recently refurbished apartment in Scarborough in November 2006. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical residencies in Scarborough with 100 year plus lease were worth £208,600. The average amount of ground rent was £60 invoiced every twelve months. The lease ran out in 2082. Considering the 57 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 not including fees.
In 2010 we were approached by Dr I Johnson who, having was assigned a lease of a one bedroom flat in Scarborough in July 2003. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Identical flats in Scarborough with 100 year plus lease were valued around £200,000. The mid-range amount of ground rent was £50 collected yearly. The lease ended in 2102. Having 77 years unexpired we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of fees.