The nearer a domestic lease in Skipton gets to zero years unexpired, the more it reduces the value of the property. If the lease has, more than 100 years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has less than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending without delay. Most flat owners in Skipton will meet the qualifying criteria; nevertheless a lawyer can advise if you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Engaging our service gives you better control over the value of your Skipton leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Cameron, started to get near to the eighty-year threshold with the lease on his leasehold apartment in Skipton. In buying his property twenty years previously, the unexpired term was of little significance. As luck would have it, he recognised he needed to take action soon on a lease extension. Cameron extended the lease at the eleventh hour last June. Cameron and the landlord who owned the flat above subsequently settled on an amount of £5,000 . If the lease had slid below 80 years, the premium would have escalated by at least £1,000.
In 2013 we were contacted by Mr and Mrs. U Dupont who, having was assigned a lease of a one bedroom flat in Skipton in January 2009. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Identical premises in Skipton with a long lease were valued around £227,800. The average amount of ground rent was £45 billed per annum. The lease came to a finish on 16 July 2090. Taking into account 65 years remaining we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 not including professional charges.
In 2011 we were called by Mrs L Rodríguez who, having purchased a recently refurbished apartment in Skipton in August 1999. The dilemma was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Identical premises in Skipton with 100 year plus lease were in the region of £275,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease concluded in 2101. Having 76 years unexpired we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including expenses.