Sowerby Bridge leases on domestic properties are gradually losing value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in Sowerby Bridge will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In certain cases you may not qualify. There are prescribed deadlines and formalities to comply with once the process is triggered so it’s sensible to be guided by a lawyer during the process.
It is generally accepted that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
Using our service gives you increased control over the value of your Sowerby Bridge leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy negotiations with the freeholder of her ground floor apartment in Sowerby Bridge, Leah started the lease extension process just as her lease was coming close to the crucial eighty-year mark. The lease extension was finalised in February 2011. The landlord’s charges were restricted to below 500 pounds.
In 2013 we were contacted by Mr and Mrs. G Moreau who, having completed a purpose-built apartment in Sowerby Bridge in November 2009. The question was if we could approximate the compensation to the landlord would be for a ninety year lease extension. Identical residencies in Sowerby Bridge with 100 year plus lease were worth £215,600. The average ground rent payable was £45 collected per annum. The lease finished on 22 October 2088. Having 62 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of legals.
Last Summer we were contacted by Mr and Mrs. K Turner , who bought a basement flat in Sowerby Bridge in May 1998. The dilemma was if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Comparable flats in Sowerby Bridge with a long lease were in the region of £265,000. The mid-range ground rent payable was £50 collected every twelve months. The lease terminated in 2099. Given that there were 73 years remaining we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.