Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will usually be granted for a set period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Sherburn In Elmet. Clearly, the term of lease remaining reduces over time. This may pass by relatively unnoticed when the flat or house needs to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Sherburn In Elmet have the right to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Please give due deliberation before delaying your Sherburn In Elmet lease extension. Holding off the cost now likely increases the price you will eventually incur for a lease extension
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years left, the property will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Sherburn In Elmet,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Sherburn In Elmet valuers.
Alexander owned a studio flat in Sherburn In Elmet being marketed with a lease of a little over fifty eight years remaining. Alexander on an informal basis approached his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Alexander to invoke his statutory right. Alexander procured expert legal guidance and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Dr N Howard acquired a studio flat in Sherburn In Elmet in August 2001. We are asked if we could approximate the price would likely be to extend the lease by ninety years. Similar residencies in Sherburn In Elmet with an extended lease were in the region of £183,600. The mid-range ground rent payable was £65 invoiced per annum. The lease expiry date was on 5 November 2083. Considering the 57 years left we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 not including expenses.
Ms Tia Michel bought a one bedroom apartment in Sherburn In Elmet in March 2001. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Identical flats in Sherburn In Elmet with an extended lease were in the region of £250,000. The average amount of ground rent was £50 collected yearly. The lease concluded on 23 February 2094. Having 68 years outstanding we approximated the compensation to the landlord to extend the lease to be between £10,500 and £12,000 plus costs.