With a domestic leasehold property in Selby, 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 as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than 80 years left. Anyone in Selby with a lease nearing 81 years unexpired should seriously consider extending it without delay. When a lease has below 80 years outstanding, under the current statute the freeholder can calculate and charge a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold premises in Selby with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| 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. |
| Lloyds TSB Scotland | 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. |
Lease extensions in Selby can be a difficult process. We recommend you procure professional help 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 dealing with Selby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
14 months ago Nathan, started to get close to the eighty-year threshold with the lease on his one bedroom flat in Selby. Having purchased his home two decades ago, the length of the lease was of little bearing. by good luck, he noticed he needed to take steps soon on Extending the lease. Nathan was able to extend his lease at the eleventh hour in September. Nathan and the landlord eventually agreed on an amount of £5,000 . If the lease had slid below 80 years, the premium would have increased by a minimum £1,075.
Ms Anna Green owned a one bedroom apartment in Selby in June 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Identical premises in Selby with an extended lease were in the region of £270,000. The average amount of ground rent was £55 billed every twelve months. The lease ended in 2101. Having 76 years left we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of costs.
Last August we were contacted by Mr and Mrs. K Ramírez , who was assigned a lease of a ground floor apartment in Selby in January 2012. The question was if we could approximate the price would likely be for a 90 year lease extension. Similar flats in Selby with a long lease were worth £173,800. The mid-range amount of ground rent was £65 invoiced yearly. The lease finished in 2080. Having 55 years unexpired we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of fees.