Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Sherburn In Elmet. Inevitably, the length of lease remaining reduces as time goes by. This may pass by relatively unnoticed when the property needs to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to procure a lease extension. Eligible leaseholders in Sherburn In Elmet have the legal entitlement to extend the lease for a further 90 years under Leasehold Reform legislation. Do give due consideration before delaying your Sherburn In Elmet lease extension. Holding off the cost now only increases the price you will ultimately have to pay to extend your lease
It is generally accepted that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure Sherburn In Elmet 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 conveyancer we work with provide it.
Harvey owned a studio apartment in Sherburn In Elmet being marketed with a lease of a few days over sixty years outstanding. Harvey on an informal basis approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Harvey to invoke his statutory right. Harvey procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the flat.
Last Spring we were contacted by Ms P Martinez , who completed a one bedroom flat in Sherburn In Elmet in January 2000. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Comparable homes in Sherburn In Elmet with 100 year plus lease were in the region of £210,600. The mid-range ground rent payable was £45 billed annually. The lease elapsed in 2087. Considering the 62 years left we approximated the premium to the landlord to extend the lease to be between £18,100 and £20,800 not including legals.
In 2013 we were approached by Mr and Mrs. D Rodríguez who, having was assigned a lease of a studio apartment in Sherburn In Elmet in February 1995. We are asked if we could approximate the price could be to extend the lease by 90 years. Identical residencies in Sherburn In Elmet with a long lease were in the region of £265,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease termination date was on 20 September 2098. Having 73 years left we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.