Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Selby. Inevitably, the length of lease left shortens over time. This may pass by relatively unnoticed when the property has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Qualifying long lease owners in Selby have the legal entitlement to extend the lease for a further ninety years in accordance with legislation. You should give careful deliberation before delaying your Selby lease extension. Putting off the cost now only increases the price you will ultimately have to pay for a lease extension
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure Selby lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Trailing lengthy correspondence with the landlord of her two bedroom flat in Selby, Catherine started the lease extension process as the eighty year threshold was fast nearing. The transaction was concluded in August 2011. The freeholder’s charges were kept to an absolute minimum.
In 2014 we were e-mailed by Mr Luke Hall who, having was assigned a lease of a garden apartment in Selby in September 1997. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Identical premises in Selby with an extended lease were worth £218,000. The average ground rent payable was £45 invoiced every twelve months. The lease ran out on 28 February 2088. Taking into account 63 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £17,100 and £19,800 exclusive of professional charges.
In 2010 we were e-mailed by Ms Jasmine Martinez who, having bought a first floor flat in Selby in May 1996. We are asked if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Identical flats in Selby with a long lease were valued about £270,000. The average ground rent payable was £55 collected quarterly. The lease termination date was in 2099. Considering the 74 years outstanding we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including fees.