It’s an underpublicised certainty that a Skipton residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Skipton property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher premium will be payable. Most flat owners in Skipton will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer throughout the formalities.
Leasehold properties in Skipton with over one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Skipton can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
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 dealing with Skipton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harvey was the the leasehold proprietor of a conversion apartment in Skipton being marketed with a lease of a little over 59 years left. Harvey on an informal basis spoke with his freeholder being 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 on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Harvey to invoke his statutory right. Harvey procured expert advice and secured an acceptable deal informally and ending up with a market value flat.
Mr and Mrs. P Carter owned a ground floor apartment in Skipton in October 2009. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Identical homes in Skipton with 100 year plus lease were valued around £260,000. The mid-range amount of ground rent was £50 collected quarterly. The lease came to a finish on 24 May 2098. Taking into account 72 years unexpired we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.
In 2012 we were e-mailed by Mr and Mrs. W Clark who, having bought a one bedroom apartment in Skipton in June 2003. The dilemma was if we could estimate the price would be to extend the lease by 90 years. Comparable residencies in Skipton with a long lease were worth £256,600. The mid-range ground rent payable was £60 collected every twelve months. The lease concluded on 4 September 2078. Taking into account 52 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £39,000 and £45,000 plus fees.