When it comes to residential leasehold property in Scarborough, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than 80 years remaining. Leasehold owners in Scarborough with a lease nearing 81 years left should seriously think of extending it as soon as possible. When the lease term has under 80 years left, under the relevant Act the freeholder can calculate and charge a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Scarborough,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Scarborough valuers.
During the course of the last few months Oscar, started to get near to the eighty-year mark with the lease on his purpose- built apartment in Scarborough. Having bought his property two decades ago, the unexpired term was of minimal significance. by good luck, it dawned on him that he needed to take action soon on a lease extension. Oscar was able to extend his lease at the eleventh hour in September. Oscar and the freeholder ultimately agreed on a premium of £5,500 . If the lease had slid below eighty years, the sum would have increased by at least £1,050.
In 2014 we were contacted by Mr and Mrs. H Miller who, having acquired a newly refurbished flat in Scarborough in November 2005. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Identical residencies in Scarborough with a long lease were valued about £295,000. The mid-range amount of ground rent was £45 billed yearly. The lease came to a finish on 13 August 2100. Taking into account 74 years left we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of expenses.
Mr and Mrs. I Thompson acquired a one bedroom apartment in Scarborough in April 1995. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparable properties in Scarborough with an extended lease were in the region of £248,000. The average amount of ground rent was £65 billed per annum. The lease terminated in 2089. Considering the 63 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 not including professional charges.