Selby leases on residential properties are gradually losing value. if your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. If lease term is under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Selby will mostly be legally entitled to a lease extension; however a solicitor will check if you qualify. In certain cases you may not be entitled. There are also strict timetables and formalities to follow once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold residencies in Selby with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Irrespective of whether you are a tenant or a landlord in Selby,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 experience and the close ties they enjoy with Selby valuers.
Hunter owned a high value apartment in Selby being sold with a lease of a little over fifty eight years outstanding. Hunter informally approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Hunter to invoke his statutory right. Hunter procured expert advice and was able to make an informed decision and handle with the matter and sell the property.
Last year we were e-mailed by Dr W Norbert , who moved into a purpose-built apartment in Selby in June 2009. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable flats in Selby with a long lease were valued around £176,200. The average amount of ground rent was £65 invoiced per annum. The lease elapsed in 2082. Given that there were 56 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £29,500 and £34,000 not including expenses.
In 2010 we were contacted by Ms U Laurent who, having acquired a basement apartment in Selby in July 2007. The question was if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparative premises in Selby with a long lease were valued about £242,600. The average amount of ground rent was £45 invoiced per annum. The lease termination date was on 4 September 2093. Taking into account 67 years unexpired we approximated the premium to the freeholder to extend the lease to be between £11,400 and £13,200 not including expenses.