The market value of a leasehold property in Skipton is impacted by how long the lease has remaining. If it is close to or less than 80 years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be finalised well before the eighty year cut off point. Statute enables Skipton qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus an additional term of ninety years. The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Skipton with over 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Skipton,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Skipton valuers.
Trailing unsuccessful negotiations with the freeholder of her studio apartment in Skipton, Kayleigh initiated the lease extension process just as the lease was coming close to the critical eighty-year threshold. The lease extension was finalised in July 2005. The landlord’s charges were kept to an absolute minimum.
In 2009 we were called by Mrs Georgina Fournier who, having completed a studio flat in Skipton in August 2007. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparable flats in Skipton with an extended lease were worth £265,000. The mid-range ground rent payable was £50 billed yearly. The lease terminated on 1 April 2100. Having 74 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of expenses.
Ms S Adams moved into a ground floor flat in Skipton in November 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Comparable properties in Skipton with 100 year plus lease were in the region of £166,400. The average ground rent payable was £60 collected every twelve months. The lease ended on 8 November 2080. Considering the 54 years unexpired we estimated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 plus professional charges.