With a domestic leasehold premises in Sowerby Bridge, you are actually buying a right to live in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially once there are fewer than eighty years remaining. Anyone in Sowerby Bridge with a lease nearing 81 years remaining should seriously think of extending it sooner rather than later. Once a lease has less than eighty years outstanding, under the current statute the landlord is entitled to calculate and levy a larger amount, assessed on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Sowerby Bridge,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Sowerby Bridge valuers.
During the course of the last few months Isaac, came seriously close to the eighty-year threshold with the lease on his basement apartment in Sowerby Bridge. Having purchased his home two decades ago, the length of the lease was of little concern. Thankfully, he recognised he would soon be paying an escalated premium for Extending the lease. Isaac was able to extend his lease just under the wire in June. Isaac and the landlord who owned the flat above subsequently settled on a premium of £5,500 . If he failed to meet the deadline, the premium would have escalated by a minimum £1,125.
Last month we were contacted by Ms U Sharif , who completed a garden apartment in Sowerby Bridge in March 1997. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Similar homes in Sowerby Bridge with an extended lease were worth £242,600. The average ground rent payable was £45 invoiced yearly. The lease end date was in 2092. Having 67 years remaining we estimated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 not including professional charges.
In 2011 we were e-mailed by Mr and Mrs. O Peterson who, having purchased a recently refurbished flat in Sowerby Bridge in July 2010. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Identical homes in Sowerby Bridge with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease ended on 19 March 2103. Having 78 years remaining we approximated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including professional charges.