There is no doubt about it a leasehold flat or house in Ulceby is a wasting asset as a result of the diminishing lease term. Where the residual term has, in excess of 125 years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Most flat owners in Ulceby will qualify for this right; that being said a conveyancing solicitor can confirm whether you are eligible 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.
Leasehold properties in Ulceby with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you better control over the value of your Ulceby leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Austin was the the leasehold owner of a conversion apartment in Ulceby being sold with a lease of a little over 72 years left. Austin informally spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 annually. No ground rent would be due on a lease extension were Austin to exercise his statutory right. Austin procured expert legal guidance and secured an acceptable resolution informally and readily saleable.
Mr Arthur Edwards took over the lease of a first floor apartment in Ulceby in April 1995. We are asked if we could estimate the price would likely be for a 90 year lease extension. Comparable premises in Ulceby with an extended lease were valued about £280,000. The mid-range ground rent payable was £45 collected yearly. The lease terminated on 16 June 2095. Given that there were 69 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including professional charges.
In 2011 we were called by Dr I Williams who, having took over the lease of a first floor apartment in Ulceby in July 2011. The question was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative premises in Ulceby with 100 year plus lease were in the region of £216,000. The mid-range ground rent payable was £60 collected annually. The lease expired on 20 August 2084. Taking into account 58 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 plus professional charges.