There is no doubt about it a leasehold property in Syston is a wasting asset as a result of the shortening lease. If the residual term has, beyond one hundred years to run then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner than later. Many flat owners in Syston will meet the qualifying criteria; however a lawyer should be able to advise whether you qualify for a lease extension. In limited 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 accepted that a residential leasehold with in excess of 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 worth the same as a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 undertake Syston 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 lawyer we work with provide it.
Last Christmas Callum, started to get near to the 80-year threshold with the lease on his basement flat in Syston. Having purchased his flat 18 years ago, the lease term was of minimal relevance. Fortunately, he realised he would soon be paying an inflated amount for Extending the lease. Callum arranged for a lease extension just under the wire in June. Callum and the landlord who owned the flat above subsequently settled on the final figure of £6,000 . If he failed to meet the deadline, the figure would have increased by a minimum £1,100.
In 2010 we were approached by Mr and Mrs. S Thompson who, having moved into a studio flat in Syston in April 1998. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by an additional years. Identical residencies in Syston with an extended lease were worth £280,000. The mid-range ground rent payable was £45 billed per annum. The lease expired in 2096. Taking into account 70 years outstanding we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of expenses.
Mr Jude Murphy bought a studio apartment in Syston in April 2003. The dilemma was if we could estimate the premium would likely be to prolong the lease by an additional years. Comparable properties in Syston with a long lease were worth £223,400. The mid-range ground rent payable was £60 billed quarterly. The lease terminated on 3 July 2085. Considering the 59 years unexpired we approximated the premium to the landlord for the lease extension to be between £27,600 and £31,800 not including professional charges.