With a domestic leasehold property in Temple Mills, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than 80 years remaining. Leasehold owners in Temple Mills with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has under eighty years outstanding, under the current Act the landlord can calculate and levy a greater amount, assessed on a technical calculation, known as “marriage value” which is due.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Temple Mills can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Temple Mills lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Charlie was the the leasehold proprietor of a 2 bedroom apartment in Temple Mills on the market with a lease of a little over 72 years unexpired. Charlie informally contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared 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 £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Charlie to exercise his statutory right. Charlie procured expert legal guidance and was able to make an informed decision and handle with the matter and ending up with a market value flat.
Mr and Mrs. J Harris completed a ground floor apartment in Temple Mills in October 1998. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by 90 years. Comparative properties in Temple Mills with 100 year plus lease were valued around £200,800. The mid-range amount of ground rent was £65 billed monthly. The lease ended in 2086. Having 60 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 exclusive of legals.
In 2012 we were called by Ms M Nelson who, having was assigned a lease of a basement apartment in Temple Mills in September 2003. The question was if we could approximate the price could be to extend the lease by a further 90 years. Similar residencies in Temple Mills with an extended lease were valued about £255,000. The mid-range ground rent payable was £50 invoiced annually. The lease expired in 2097. Given that there were 71 years remaining we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.