For those whose Settle flat is held on a long lease, our message is clear – if you do nothing, the property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more expensive it will be to extend the lease.
Leasehold properties in Settle with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you better control over the value of your Settle leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to protracted negotiations with the landlord of her two bedroom flat in Settle, Amber initiated the lease extension process as the eighty year deadline was fast nearing. The lease extension was concluded in September 2006. The landlord’s charges were restricted to less than 450 GBP.
Last August we were approach by Dr V Thomas , who took over the lease of a recently refurbished flat in Settle in November 2006. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Similar homes in Settle with an extended lease were worth £243,000. The mid-range amount of ground rent was £65 collected per annum. The lease ran out in 2089. Taking into account 63 years outstanding we estimated the premium to the landlord to extend the lease to be within £20,000 and £23,000 plus costs.
In 2010 we were called by Dr Emily Mason who, having bought a purpose-built apartment in Settle in February 2007. We are asked if we could approximate the premium could be to extend the lease by a further 90 years. Identical flats in Settle with 100 year plus lease were in the region of £181,600. The mid-range ground rent payable was £55 invoiced yearly. The lease expired in 2078. Having 52 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 plus expenses.