It’s a harsh truth that a Settle residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Settle property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If the number of years remaining dips below 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most leasehold owners in Settle will be able to extend under the legislation; however a lawyer will be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer throughout the process.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Yorkshire 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. |
Lease extensions in Settle can be a difficult process. We recommend you get guidance from a conveyancer and valuer 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 procuring Settle lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted negotiations with the freeholder of her basement apartment in Settle, Jodie initiated the lease extension process just as the lease was nearing the crucial eighty-year threshold. The transaction completed in January 2005. The landlord’s costs were negotiated to approximately 700 GBP.
Last Summer we were contacted by Dr O Cooper , who purchased a newly refurbished apartment in Settle in March 2009. The dilemma was if we could estimate the premium would be to extend the lease by ninety years. Comparable residencies in Settle with a long lease were in the region of £216,000. The average ground rent payable was £60 billed yearly. The lease finished in 2083. Given that there were 58 years remaining we estimated the premium to the freeholder for the lease extension to be within £28,500 and £33,000 not including legals.
Last June we were called by Dr Mollie Moore , who acquired a first floor flat in Settle in August 1995. The question was if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparable homes in Settle with 100 year plus lease were in the region of £205,000. The average ground rent payable was £50 billed monthly. The lease ran out on 11 August 2103. Considering the 78 years outstanding we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of costs.