Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will ordinarily be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Sprotbrough. Clearly, the period of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the residence needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Sprotbrough have the right to extend the lease for an additional 90 years in accordance with the 1993 Leasehold Reform Act. Please give careful consideration before putting off your Sprotbrough lease extension. Putting off the cost now likely increases the price you will ultimately have to pay to extend your lease
It is conventional wisdom that a property with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
The conveyancers that we work with handle Sprotbrough lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Austin owned a 2 bedroom apartment in Sprotbrough being sold with a lease of fraction over 59 years left. Austin on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Austin to invoke his statutory right. Austin obtained expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last Spring we were called by Mr and Mrs. B Gunderson , who moved into a studio apartment in Sprotbrough in November 2000. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical homes in Sprotbrough with an extended lease were valued around £230,800. The average amount of ground rent was £60 invoiced every twelve months. The lease ran out in 2086. Taking into account 60 years unexpired we estimated the premium to the freeholder for the lease extension to be within £24,700 and £28,600 plus professional charges.
Last month we were e-mailed by Mr and Mrs. B Rose , who acquired a newly refurbished apartment in Sprotbrough in February 2009. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Identical properties in Sprotbrough with 100 year plus lease were in the region of £210,000. The mid-range ground rent payable was £50 billed quarterly. The lease ended on 6 June 2106. Considering the 80 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of costs.