Unfortunately that a Tadcaster residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Tadcaster property market.Where your lease has approximately 90 years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher premium will be due. Most leasehold owners in Tadcaster will be able to extend under the legislation; however a conveyancer should be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold properties in Tadcaster with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Tadcaster 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.
Luke was the the leasehold owner of a conversion flat in Tadcaster on the market with a lease of just over sixty years remaining. Luke informally contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Luke to exercise his statutory right. Luke obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the property.
Last March we were called by Mrs Freya Ward , who purchased a ground floor apartment in Tadcaster in October 2012. The dilemma was if we could estimate the premium would be for a 90 year extension to my lease. Identical properties in Tadcaster with a long lease were valued around £243,000. The average ground rent payable was £65 billed annually. The lease ended on 19 March 2088. Having 63 years left we calculated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 not including fees.
Mr and Mrs. B Mason was assigned a lease of a one bedroom apartment in Tadcaster in January 2010. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparable homes in Tadcaster with an extended lease were valued about £181,600. The mid-range ground rent payable was £55 collected quarterly. The lease concluded on 18 May 2077. Having 52 years left we approximated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 plus costs.