It’s an underpublicised truth that a Ulverston residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. 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 Ulverston property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term drops under eighty years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Ulverston will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. 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 throughout the process.
Leasehold properties in Ulverston with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| 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. |
| 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. |
| 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. |
Using our service will provide you better control over the value of your Ulverston leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following unsuccessful discussions with the landlord of her ground floor flat in Ulverston, Grace initiated the lease extension process just as the lease was coming close to the critical 80-year deadline. The transaction completed in March 2012. The landlord’s costs were restricted to approximately six hundred GBP.
Last Autumn we were called by Dr B Bonnet , who completed a basement apartment in Ulverston in April 2004. We are asked if we could approximate the premium could be to prolong the lease by ninety years. Similar properties in Ulverston with a long lease were valued around £280,000. The average amount of ground rent was £55 invoiced monthly. The lease concluded in 2103. Taking into account 78 years left we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of expenses.
Last month we were phoned by Mr Finn Edwards , who owned a ground floor flat in Ulverston in March 2010. We are asked if we could approximate the premium could be to extend the lease by an additional years. Identical homes in Ulverston with 100 year plus lease were worth £191,000. The average amount of ground rent was £65 collected every twelve months. The lease ran out in 2083. Considering the 58 years remaining we approximated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 plus fees.